News

Karen Manna from Federated Hermes stated that Federal Reserve Chairman Powell might not satisfy investors' desire for clarity when he speaks to reporters after tomorrow's rate decision. The Federal Reserve is expected to keep rates unchanged, and Powell may face questions about the impact of tariffs on inflation and the economy. The final level and duration of the tariffs remain unknown, which limits Powell's ability to provide more clear information. "Forecasting is always fraught with difficulties, and making predictions in a constantly changing environment is almost impossible." She expects this uncertainty to persist until the Federal Reserve's June meeting, unless there is some substantial change.

The U.S. Treasury issued $42 billion in 10-year bonds with a winning yield of 4.342%, which is lower than the pre-auction trading level of 4.354% at the 1 p.m. bid deadline in New York. U.S. Treasury bonds subsequently rose, with the 10-year yield falling to an intraday low of 4.32%, down more than 2 basis points on the day.