![](https://www.itstargetnews.com/wp-content/uploads/2025/01/18b02b84d9884fef402ee8856c19af6f.jpeg)
(Bloomberg)-USRESORERIA was maintained with the recent gains ahead of the interest rate decision of the Federal Reserve, as the traders stepped on the bakery bets in the hope that President Jerome Powell indicates a cut in March.
Most are read from Bloomberg
The yields were changed to the curve on Wednesday, and the two -year rates exceeded the lowest level in more than a month, as the market was waiting for the Powell afternoon press conference for perspectives on perspectives. of politics. The Central Bank of the United States is expected to keep the rates constant this week, although the exchanges are approximately 30% of the possibility of cut in March.
Traders have a lot of assembly in Powell’s observations. Expectations for relieving the rise to start this week during a journey based on technology in actions and the risk atmosphere produced a wave of betting on treasury profits. The latest JPMORGAN CHASE & CO. Published on Tuesday it shows the longest net position of the United States Government debt in almost 15 years.
“The Fed has shown a wealthy bias,” said Kevin Tozet, a member of the Carmignac Investment Committee, who favors United States treasures on European sovereigns. “The most recent publication of inflation was quite benign, not to mention the potential deflaration impact of the last developments of the AI.”
Coverage for a possible reduction in the March rate makes sense after the greater inflation printing than expected and the commentary by Governor Christopher Waller, which facilitating in the middle of the year. The great question sign, of course, is still the fare plans of President Donald Trump and his impact on the economy.
Given the lack of clarity around taxes, “this could see that Powell will doubt to take a March meeting that cut the table for optional”, despite what seems to be a stable labor market, he said The Citigroup Inc. Strateg. a note.
In another sign that long positions are built in treasury, the interest open for future – or the amount of new risk of traders – increases in ten -year note contracts, especially after the manifestation of bonds on Monday. . In Options, a prominent trade in recent sessions has also led a larger manifestation of good. The benefits of the position obtained an increase in the rise of the assets of Haven.
Morgan Stanley sees Wednesday’s meeting as a catalyst for another lower leg in treasure returns, with strategies led by Matthew Hornbach, recommending that investors stay for five years and the position for a March cut.