Lates News

In the UK government bond market leading the way, US Treasury bonds regained some lost ground from last week. Despite early setbacks in the corporate bond market this week - Amazon issued $12 billion worth of US dollar-denominated bonds (its first USD bond issuance since 2022) - the rebound in Treasury bonds was maintained. Similarly, on Monday, the indicator measuring factory activity in New York unexpectedly reached its highest level in a year. However, most Treasury bond yields still fell by 1 to 3 basis points. There were previous predictions that the final recovery of federal economic data after the six-week US government shutdown that ended last week would revitalize the prospect of another interest rate cut by the Fed next month. Morgan Stanley's interest rate strategist predicts that by mid-2026, the yield on US 10-year Treasury bonds will fall to 3.75%, with a bullish outlook possibly even reaching 2.40%. Although the fate of some US economic reports that were not released during the shutdown remains uncertain, the Bureau of Labor Statistics stated that the September data originally scheduled for release on October 3rd will be published on November 20th. The Fed cut interest rates by 0.25 percentage points in September and October respectively to address signs of weakening labor demand, although inflation still exceeds its 2% target.