The yield on US Treasury bonds remained almost unchanged, while investors continued to analyze the results of yesterday's Fed meeting.
The yield on 10-year Treasury bonds fell by 1.2 basis points, reaching 1.45%, while the yield on 30-year bonds was 1.865% (+1.4 basis points).
Following the results of the December meeting, Fed leaders voted to keep the rate at around zero, while most Fed leaders signaled that they were ready to raise the rate three times next year in order to slow down inflation. The Fed also approved plans for an accelerated curtailment of the quantitative easing program, the completion of which will allow the transition to raising rates next spring. The Fed will reduce the volume of monthly purchases of US Treasury bonds by $ 20 billion, and the volume of monthly purchases of mortgage-backed securities by $ 10 billion. As a result, in January, the volume of purchases of treasury bonds will amount to $ 40 billion, and the volume of purchases of mortgage-backed securities will amount to $ 20 billion. Meanwhile, the Fed said it would adjust the pace of asset purchases based on the economic outlook.
Commenting on the results of the Fed meeting, experts said that given that the US economy is working at full capacity, the Fed did the right thing by deciding to reduce the volume of the quantitative easing program. However, experts warned that the Fed should be prudent about when and how quickly to raise interest rates.
Meanwhile, today the focus will be on American data on the US labor market (a report on the number of initial applications for unemployment benefits), on the housing market (a report on the number of construction permits and the housing starts), as well as PMI indices in the manufacturing sector and the service sector.