Financial Markets Daily Report26 September 2023
In the first session of the week, central banks remained the focus of investors’ attention, as they continue to digest the high-for-longer rhetoric. Yesterday, the hawkish tone of some FOMC members’ comments pushed US 10-year Treasury yields higher, fluctuating above 4.5%, a level not seen since late 2007.
- In the first session of the week, central banks remained the focus of investors’ attention, as they continue to digest the high-for-longer rhetoric. Yesterday, the hawkish tone of some FOMC members’ comments pushed US 10-year Treasury yields higher, fluctuating above 4.5%, a level not seen since late 2007.
- In particular, Boston Fed President Susan Collins said that further rate hikes are certainly not off the table while Governor Michelle Bowman said that more than one rate increase might be needed to bring inflation back to 2%.
- In this context, stock indices edged up modestly in the US and fell in the euro area, where sovereign yields rose after Christine Lagarde reiterated that official interest rates will need to be kept at current levels for a sufficiently long period of time. In FX markets, the US dollar strengthened against most of its peers, leaving the euro below $1.06.
- In commodity markets, European natural gas prices rose towards 45€/MWh amid concerns over this winter’s supply.