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Market attention turns to central bank resolutions, analyst: Post-resolution communication more important

Market attention turns to central bank resolutions, analyst: Post-resolution communication more important

Bitget2024/11/07 09:05

The jolting sell-off in Treasuries paused Thursday, Nov. 7, as investors' attention shifted from Trump's election win to interest-rate decisions by major central banks, including the Federal Reserve.Yields on the 30-year U.S. bond were little changed after spiking 17 basis points on Wednesday, the biggest gain since March 2020.The 30-year U.S. bond was also little changed after surging 17 basis points on Wednesday, the biggest gain since March 2020.The 30-year U.S. bond was little changed after spiking 17 basis points on Wednesday. British bonds rebounded from three straight days of losses, while eurozone bonds fell as investors digested news of a snap German election. Traders are looking to central bankers to see how Trump's potential tax cuts and high tariff policies will affect global growth and inflation prospects. Michiel Tukker, rates strategist at ABN AMRO, said: 'Powell's comments on the current economic environment and how the next US president might affect the economic outlook will be of great significance. Both the Fed and the Bank of England are expected to cut rates, but communication between the two governors could be more meaningful in the wake of a possible Republican victory and the UK budget.

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