JGB Futures Rise; Market Likely Tracking Gains in U.S. Treasurys
Portfolio Pulse from
U.S. Treasury yields are falling due to growing market expectations of a Federal Reserve interest rate cut in June. Money markets are now fully pricing in a 25 basis-point rate reduction, earlier than previously anticipated. The potential rate cut is contingent on upcoming CPI and PPI inflation data showing a slowdown in price increases.
March 18, 2025 | 11:30 am
News sentiment analysis
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NEGATIVE IMPACT
BlackRock Investment Institute has taken an underweight stance on eurozone government bonds, citing potential U.S. tariffs and ongoing fiscal stimulus in Europe that may keep policy rates higher than pre-pandemic levels.
BlackRock's cautious view on European bonds could impact investor sentiment and potentially influence the company's stock performance due to its significant influence in global investment markets.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The DXY index has fallen to a four-month low of 103.369 as market expectations of a June rate cut grow, potentially signaling reduced demand for the U.S. dollar.
Growing expectations of a June rate cut are putting downward pressure on the U.S. dollar, as lower interest rates typically reduce the attractiveness of dollar-denominated assets.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90