Investors await jobs data and Fed’s rate cut decision

  • Treasury yields rise as investors digest Powell’s comments
  • Yield on 2-year Treasury climbs by 4.1 basis points
  • Investors push back timing of Fed’s rate cut in 2024
  • 64.5% probability that Fed will leave rates unchanged in March
  • Expectation of at least a 25 basis point rate cut by May
  • Investors await January nonfarm payrolls report
  • Concerns about tension in regional banking sector suppress yields

U.S. bond yields rose as investors continued to digest comments from Federal Reserve Chair Jerome Powell and looked ahead to January jobs data. The yield on the 2-year Treasury climbed by 4.1 basis points, while the yield on the 10-year Treasury rose by 2.9 basis points. Investors have pushed back the timing of the Federal Reserve’s first interest rate cut in 2024, but still expect a reduction in borrowing costs this year. The Fed is not likely to cut rates at the next scheduled meeting in March, but there is a high probability of a rate cut by May. Investors are eagerly awaiting the January nonfarm payrolls report to gauge the health of the job market. Concerns about tension in the regional banking sector have also contributed to the rise in yields.

Public Companies: Bank of America (BAC), New York Community Bancorp (NYCB)
Private Companies:
Key People: Jerome Powell (Federal Reserve Chair), Michael Gapen (U.S. economist at Bank of America), Stephen Innes (Managing partner at SPI Asset Management)

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Factuality Level: 7
Justification: The article provides information about the rise in U.S. bond yields and the factors driving the market. It includes quotes from Federal Reserve Chair Jerome Powell and market expectations. The article also mentions upcoming economic updates and the Bank of England’s interest rate decision. Overall, the information provided seems to be factual and based on current market conditions.

Noise Level: 3
Justification: The article provides information on the rise in U.S. bond yields and the factors driving the market. It includes quotes from Federal Reserve Chair Jerome Powell and predictions from economists. However, it lacks in-depth analysis, evidence, and actionable insights. The article also includes unrelated information about the Bank of England, which is not relevant to the main topic.

Financial Relevance: Yes
Financial Markets Impacted: U.S. bond yields

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the rise in U.S. bond yields and the expectations of the Federal Reserve’s interest rate cuts. This information is relevant to financial markets and investors.

Reported publicly: www.marketwatch.com