Treasury yields rise ahead of big economic data dump

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A more positive tone across markets is curtailing demand for fixed income products, nudging up Treasury yields

Bond yields rose on Thursday as improved risk appetite in markets reduced demand for government bonds and traders waited for a batch of U.S. econonic dataTraders are waiting... Bond yields rose on Thursday as improved risk appetite in markets reduced demand for government bonds and traders waited for a batch of U.S. econonic dataTraders are waiting for a batch of U.S. economic updates set for release on Thursday.

Markets are pricing in a 99.7% probability that the Fed will raise interest rates by another 25 basis points to a range of 4.50% to 4.75% after its meeting on February 1st, according to the CME FedWatch tool, as the central bank seeks to curb inflation running at more than three times its 2% target. “[We] do think the Fed’s forward guidance could also include some changes, notably updating the ‘ongoing’ wording into something akin to ‘some further’ rate hikes will be appropriate,” Nevruzi wrote in a note.

 

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