Market pricing for Federal Reserve policy turns slightly more hawkish after the release of US GDP data.
According to Odaily, U.S. Treasury bonds fell to intraday lows after the release of third-quarter GDP data. The U.S. economy grew by 4.3% in the third quarter, marking the fastest pace in two years. U.S. Treasury yields rose slightly on the day, after having dipped during the morning session. The yield on the 10-year U.S. Treasury reached an intraday high, hovering around 4.165%, underperforming German and UK bonds of the same maturity by 3 and 2 basis points, respectively. Market pricing for Federal Reserve policy has turned slightly more hawkish, with current expectations for a rate cut at the January policy meeting at about 3 basis points, compared to 4 basis points at Monday’s close.
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