Global shares were broadly steady and the dollar nudged higher on Tuesday, ahead of Federal Reserve Chair Jerome Powell's testimony that could offer a steer on the outlook for U.S. rates, while soft Chinese trade data dented oil.
"Most Fed members have also sounded hawkish, raising the prospect of a shift higher in March dot plot. If a similar message is conveyed by Chair Powell, we could see U.S. Treasury yields rising again and the dollar reversing back to an uptrend," they said.was marginally in positive territory at 641.60 points, close to Monday's two-week highs.
Yields on benchmark 10-year Treasury notes , which have more than doubled in the last 12 months, were last down 5 basis points on the day at 3.93%. Yields on the two-year note , which are more sensitive to changes in interest rate expectations, were down 4 bps at 4.857%. Two-year yields have more than trebled in the last year to almost 5%, their highest since 2007.
Money markets show traders believe U.S. rates will peak just shy of 5.5% by September, from a range of 4.50-4.75% right now.Powell starts his semi-annual two-day testimony before Congress on Tuesday. Investors will monitor his remarks for any insight into his thinking on where U.S. rates will likely head.a 76% probability the Fed will raise rates by 25 basis points at its March 21 to 22 meeting and a 24% likelihood of a 50 bp increase.
The U.S. February employment report is expected on Friday and any softening in the robust jobs market will be seen as a sign that the Fed's rate hikes are having their desired effect.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
These are Wall Street analysts' favorite global stocks for U.S. investorsA weaker dollar and expectations of an economic rebound in China have bolstered global stocks.
Read more »
Dollar subdued ahead of Powell testimonyThe dollar was subdued on Tuesday ahead of testimony by Federal Reserve chair Jerome Powell, which investors will focus on for cues of the path the U.S. central bank is likely to take in tackling sticky inflation.
Read more »
Dollar subdued as traders eye Powell testimony, jobs reportThe U.S. dollar made a tentative start to the week on Monday as investors awaited testimony from Federal Reserve Chair Jerome Powell and looked towards for a February jobs report that will likely influence how hawkish the U.S. central bank will be.
Read more »
Dollar slips as investors await Powell testimonyThe U.S. dollar was broadly lower on Monday as investors awaited testimony from Federal Reserve Chair Jerome Powell and looked towards a February jobs report at the end of the week that will likely influence how hawkish the U.S. central bank will be.
Read more »
US Dollar Index: DXY bears approach 104.00 with eyes on Fed Chair Powell’s TestimonyUS Dollar Index: DXY bears approach 104.00 with eyes on Fed Chair Powell’s Testimony – by anilpanchal7 DollarIndex RiskAppetite YieldCurve Fed Currencies
Read more »
Forex Today: US Dollar consolidates losses as focus shifts to Powell's testimonyForex Today: US Dollar consolidates losses as focus shifts to Powell's testimony – by eren_fxstreet Currencies Majors Fed Commodities Macroeconomics
Read more »