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The stock market is expected to experience a significant upturn following the Federal Reserve's first interest-rate cut since 2019, according to a recent analysis by Ned Davis Research. ....
The bond market is experiencing a flurry of activity as investors rush to secure higher-yielding paper before the expected interest rate cuts by the U.S. Federal Reserve. This anticipated move by the Fed is prompting companies to take advantage of the current lower borrowing costs, resulting in a surge of new bond issuance in 2024. ....
The recent surge in five-year U.S. yields, the most significant since May 19, was driven by traders reducing their bets on Federal Reserve interest-rate cuts for the year. ....
Federal Reserve Chairman Jerome Powell stands ready to pull some of the central bank’s policy levers in between regularly scheduled meetings, if that’s what it takes to keep short-term interest rates under control. He noted recent downward pressure on rates during the Federal Open Market Committee’s March 16-17 meeting, according to minutes released Wednesday, and said it might be appropriate adjust the interest on excess reserves rate (known as IOER), the amount the Fed pays on its facility for overnight reverse repurchase agreements or both. Action could come at a regular meeting or between them to keep the fed funds rate, the central bank’s main policy benchmark, “well within” 0% to 0.25%, he said. ....
To view all features and options, click here. A monthly subscription is charged pro rata, based on the day of purchase. This is non-refundable and includes a R5 once-off sign-up fee. A yearly subscription is refundable within 14 days of purchase and includes a 365-day membership. Repo and Treasury bill rates have been flirting with zero – and even trading below sometimes – since the beginning of the year as reserve balances at the central bank swell. Market participants have told the Fed that a rapid expansion in reserves could keep driving money-market rates lower, with the earliest and most pronounced moves in the overnight secured funding markets. ....