U.S. bond prices rallied, with the 30-year yield hitting a record low on Wednesday as investors bet U.S. rate hikes were less likely to start soon after the Federal Reserve said inflation was running below forecasts. U.S. stocks, after spending most of the session higher, reversed course and fell, with the S&P 500 ending more than 1 percent lower. The dollar strengthened.
Some stock investors saw Fed officials as more upbeat on the U.S. economy, suggesting they will stick with their plan for raising interest rates by mid-year. Thirty-year bonds US30YT=RR were last up 2-18/32 in priceto yield 2.29 percent after setting a record low of 2.273percent, according to Thomson Reuters data.
Other maturities, including the 10-year US10YT=RR, also rose in the rally following the statement from the Fed, which repeated it will remain “patient” in beginning to normalize monetary policy. The statement concluded the Fed’s first policy-setting meeting of the year. The Fed’s mention of international developments was “probably perceived as dovish” and caused the bond market to rally, said Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.