"The dollar index held steady on Tuesday, as markets awaited confirmation that the US government shutdown could soon end."
"The Senate advanced a bill late Monday to restore funding for federal agencies, narrowly reaching the 60-vote threshold needed."
"Improved risk sentiment helped lift US Treasury yields across all maturities, with the 10-year note holding firmly above 4.10%, reflecting cautious optimism that the shutdown's resolution could ease economic uncertainty."
"In the meantime, markets assign a 64% probability for a 25-basis-point interest rate cut at the next Federal Reserve meeting."
Markets awaited confirmation that the US government shutdown could soon end as the Senate advanced a funding bill after narrowly reaching the 60-vote threshold. House Speaker Mike Johnson indicated a vote could occur as early as Wednesday before the measure would go to President Donald Trump. Improved risk sentiment pushed US Treasury yields higher across maturities, with the 10-year yield holding above 4.10%, signaling cautious optimism about reduced economic uncertainty. A delay or setback could push yields and the dollar lower. Resolution would allow key economic data to resume and could recalibrate rate-cut expectations, raising potential market volatility. Markets currently price a 64% probability of a 25-basis-point Fed cut at the next meeting.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]