Bond market sees no end to tumult as Federal Reserve casts a hawkish shadow

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Bond market sees no end to tumult as Federal Reserve casts a hawkish shadow
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Investors anticipate US Treasuries will continue to be whipsawed by heightened volatility from economic uncertainty. Find out more.

After the Fed’s policy meeting in July, when it raised its overnight rate by 0.25 percentage points, chair Jerome Powell emphasized that its decision at the next meeting in September would hinge on the data released over the next two months.Fed will hold steady in September

On Aug. 11, an index of producer prices also rose at a faster-than-expected pace, driving up Treasury yields across maturities. The annual gathering of global central bankers later this month in Jackson Hole, Wyo., will also be closely watched. It could give Powell a venue to push back on markets pricing in that the Fed will cut its key rate to around four per cent by January 2025. It’s in the range of 5.25-5.5 per cent now.Article content

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