Chasing Yields

U.S. Treasury yields are easing as geopolitical uncertainty dominates. The 10-year Treasury yield dipped to 4.30% today, down slightly from the previous session and pulled back from an eight-month high of 4.44% two days ago.

The US Treasury brought $183 billion in 2-year, 5-year, and 7-year notes to market this week — and demand was underwhelming across the board.

As producers and consumers pay higher prices for goods and services, not only is this a painful reality that the Fed will not cut the Fed Funds Rate anytime soon, but it also increases the likelihood that inflation is out of control or not fleeting.

As the new year unfolds, investors face a dizzying array of choices. The AI boom continues to dominate headlines. Cryptocurrencies promise revolutionary returns.

Job Openings and Labor Turnover Survey (JOLTS) numbers were released this week from the Bureau of Labor Statistics indicating that there were 7.15 million jobs opened at the end of November.

Treasuries edged lower today after the Bureau of Labor Statistics announced October and November job reports.

While investors wait for the results of the FOMC meeting and an anticipated cut, the bond market is keeping an eye on the bigger picture.

Traders are very optimistic that the Federal Reserve Committee will cut interest rates at its upcoming policy meeting on December 10th.

Investors have notably increased their investments in artificial intelligence stocks this year, capitalizing on the surge in AI-related sectors and the market’s recent highs, resulting in record levels of investment.