Treasury yields are experiencing a downtrend following the Fed’s decision to continue with a rate pause following its November FOMC meeting. The 10-year yield dropped over 10 basis points, suggesting that market participants are pricing in a Fed likely done with policy hiking.
The US yield curve has been well off its highs since 2007, with a 5% drop since 2007. The market remains within the upward sloping trend channel on a year-to-date chart, but Blikre highlights changes over the last three months.
Data from yesterday, including the Treasury announcement, net Spy returns, and the post-Fed day, trended down. The red line, which usually happens from 2:00 to 4:00 PM, goes back to 2022, where this downtrend has occurred.
Although analysts see the opposite trend in stock and bond volatility, the post-Fed day has also been trending downward. Bonds and stocks both fell, but the market is supported on the two-month chart, indicating that risk markets are heading in the right direction. The market’s expected recovery may not materialize in the next week or two, according to analyst predictions.<\/p>\n","protected":false},"excerpt":{"rendered":"
Treasury yields are experiencing a downtrend following the Fed’s decision to continue with a rate pause following its November FOMC meeting. The 10-year yield dropped over 10 basis points, suggesting that market participants are pricing in a Fed likely done with policy hiking. The US yield curve has been well off its highs since 2007, …<\/p>\n","protected":false},"author":13,"featured_media":53146,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6885,8143,10371,10088],"class_list":["post-91950","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-fed","tag-interest-rate-hikes","tag-interest-rate-pause","tag-t-yields"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/91950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=91950"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/91950\/revisions"}],"predecessor-version":[{"id":91956,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/91950\/revisions\/91956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/53146"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=91950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=91950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=91950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}