3 Min Read
NEW YORK (Reuters) - A gauge of global stocks gained on Wednesday and the U.S. dollar slid after the Federal Reserve repeated its pledge to keep its target interest rate near zero for years to come.
FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri
The yield on the benchmark U.S. Treasury note, whose surge has roiled markets in recent weeks, fell back after hitting its highest level since January 2020 ahead of the highly anticipated statement from the central bank.
Caution prevails in world markets ahead of Fed
By Dhara Ranasinghe
Reuters
LONDON (Reuters) - Caution descended on markets on Wednesday with world stocks holding below recent record highs as investors waited to see whether the U.S. Federal Reserve would signal a faster path toward policy normalisation than previously expected.
The U.S. central bank ends a closely anticipated two-day meeting later in the day, after a sharp rise in U.S. Treasury yields this year on expectations for stronger growth and inflation.
The Fed is expected to forecast that the U.S. economy will grow in 2021 at the fastest rate in decades. But investors who expect rosier projections to translate to any change in monetary policy will probably be disappointed.
U.S. Treasury yields hit new highs as key Fed statement looms
U.S. 10-year Treasury yields rose to their highest levels since early 2020 on Wednesday as investors waited to see whether the Federal Reserve would signal a faster path toward policy normalisation than previously expected.
World stocks meanwhile headed lower and Russia’s rouble fell sharply after comments from U.S. President Joe Biden that Russian President Vladimir Putin “would pay a price” for election interference.
But market volatility is being contained by the upcoming Fed policy statement.
The central bank is expected to forecast that the U.S. economy will grow at the fastest rate in decades in 2021 thanks to a $1.9 trillion fiscal boost and COVID-19 vaccine rollout. But investors who expect rosier projections to translate to any change in monetary policy will probably be disappointed.
March 17, 2021
When it comes to inflation-fighting fixed income instruments, investors often turn to Treasury Inflation Protected Securities (TIPS). Yet senior loans may also do the trick, with higher levels of income to boot. Enter the
SRLN invests in senior loans given to businesses operating in North America and outside of North America. The portfolio may invest in senior loans through the loans directly via the primary or secondary market or via participation in senior loans, which are contractual relationships with an existing lender in a loan facility where the loan portfolio purchases the right to receive principal and interest payments.
3 Min Read
NEW YORK (Reuters) - A gauge of global stocks gained on Wednesday and the U.S. dollar slid after the Federal Reserve repeated its pledge to keep its target interest rate near zero for years to come.
FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri
The yield on the benchmark U.S. Treasury note, whose surge has roiled markets in recent weeks, fell back after hitting its highest level since January 2020 ahead of the highly anticipated statement from the central bank.