Released US economic data during the previous week were driving the sentiment for the US Treasuries. Released data of Q4 GDP growth rate of 3.3% was better than anticipated by the market`s 2.0%. Also released PCE data show further easing of inflation pressures, where core PCE reached 2.9%, lower from expected 3.0% by the market. This supported market sentiment on a Fed's rate cuts during the course of this year, so the yields responded to those expectations. The 10Y Treasuries started the week around 4.2%, but ended it at 4.14%.
The FOMC meeting is scheduled for the week ahead. In case that Fed`s rhetoric reveals anything new that the market did not priced, then it could be expected some volatility on markets, but also in Treasury yields. However, in case that everything runs smoothly, as expected, then the 10Y US yields should further ease, at least till the level of 4.10%, with some potential for 4.0%.
The FOMC meeting is scheduled for the week ahead. In case that Fed`s rhetoric reveals anything new that the market did not priced, then it could be expected some volatility on markets, but also in Treasury yields. However, in case that everything runs smoothly, as expected, then the 10Y US yields should further ease, at least till the level of 4.10%, with some potential for 4.0%.
