{"id":16407,"date":"2024-12-23T09:01:16","date_gmt":"2024-12-23T09:01:16","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=16122"},"modified":"2024-12-23T09:01:16","modified_gmt":"2024-12-23T09:01:16","slug":"us-treasury-yields-steady-above-4-53","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/us-treasury-yields-steady-above-4-53\/","title":{"rendered":"US Treasury Yields Steady Above 4.53%"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-medium-font-size\">Key Points<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>10-year US Treasury note yield holds above 4.53% amid shifting rate cut outlook.<\/li>\n\n\n\n<li>Core PCE inflation posted the smallest rise in six months, challenging last week\u2019s hawkish Fed stance.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">Yields on the 10-year US Treasury note stabilised above 4.53% on Monday after briefly coming under strain the previous session. Market participants reacted to the latest personal consumption expenditures (PCE) inflation data, which eased fears about the pace of rate cuts next year.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Longer-dated US Treasuries weakened Thursday, propelling the yield curve to steepen to a level last seen about 30 months following the Fed\u2019s hawkish rate easing and projections for fewer cuts next year <a href=\"https:\/\/t.co\/vfvnGPaho4\">https:\/\/t.co\/vfvnGPaho4<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1869770261802750372?ref_src=twsrc%5Etfw\">December 19, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Core PCE prices, the Federal Reserve\u2019s favoured gauge of underlying inflation, edged lower than expected and recorded the smallest monthly climb in six months.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/12\/image-15-1024x442.jpeg\" alt=\"\" class=\"wp-image-16123\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: US 10-Year Note hovering near recent highs, as traders weigh Fed signals and incoming economic data, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">USNote10Y traded in a tight range, closing at 108.94, just shy of the 108.98 high. Short-term moving averages (MA5, MA10, MA30) hover close to the current price on the 15-minute chart, indicating a levelling in momentum.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The MACD (12,26,9) has flattened near the centre line, showing that the earlier upswing to 109.23 may be losing some steam.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This soft reading of inflation data undermined the <a href=\"https:\/\/t.co\/e4OiT8uGr9\">Fed\u2019s hawkish message<\/a> from last week, when policymakers scaled down their forecast from four rate cuts to only two in 2024.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traders now price in 44 basis points of rate reductions next year, a level that lingers below the central bank\u2019s projection. A cautious approach may work best in this fluid environment, as <a href=\"https:\/\/t.co\/unrH98lrtX\">Treasuries <\/a>could see shifts if growth moderates faster or if fresh data affirms the Fed\u2019s current stance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, trader sentiment picked up after <a href=\"https:\/\/t.co\/9YqrExXhCM\">Congress <\/a>passed spending legislation on Saturday, sidestepping a looming US government shutdown. This development soothed worries of funding disruptions and lifted market morale.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Equity traders may respond by rotating between growth and defensive sectors, seeking a safer balance while the economy adapts to ongoing changes in monetary policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yields hold above 4.53% as weaker PCE data reduce concerns on Fed rate cuts, boosting investor sentiment. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[33],"class_list":["post-16407","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-stocks"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/16407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=16407"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/16407\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=16407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=16407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=16407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}