US bonds rally post-Fed and treasury news, BoE to decide [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

The Federal Reserve (Fed) maintained its interest rates unchanged at this week’s meeting, but improved its growth outlook and left the door open for more tightening. The Bank of England (BoE) is expected to maintain the status quo, as well.

The latest Fed decision was unsurprisingly hawkish and did not impact appetite in US bonds which got a boost from the Treasury’s announcement of a slightly lower-than-expected quarterly refunding auction size for the 3, 10 and 30-year maturity bonds next week. Cherry on top, the US Treasury said that they now expect one more step up in quarterly issuances for the long-term debt, whereas the expectation was multiple more step ups.

The US 10-year yield sank to 4.70% after the Fed decision and Treasury’s much-awaited issuance calendar reveal, the 30-year yield fell to 4.90%. Stocks rallied. AMD and Qualcomm gained after results, Apple is due to reveal its Q3 earnings after the bell.

Elsewhere, gold eased and oil rebounded from a psychological support.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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