Treasury yields fall as dollar gains strength, markets watching U.S. rate cut expectations

From Investing.com: 2025-01-09 13:51:27

U.S. Treasury yields fell from an eight-month high while the dollar strengthened against major currencies. The benchmark dropped 0.45 basis points to 4.689%. Markets are watching the U.S. monthly payrolls report for clues on the Fed’s policy outlook. Markets expect just one 25-basis-point U.S. rate cut in 2025.

Minutes of the Fed’s December policy meeting showed concerns over Trump’s proposed tariffs and immigration policies. A market selloff in Treasuries continued after reports of Trump considering declaring a national economic emergency. U.S. stock markets were closed on Thursday for former U.S. president Jimmy Carter’s funeral.

European shares finished higher, helped by gains in healthcare and basic materials stocks. The pound faced a big drop as concerns over Britain’s finances grow. The yen traded near 109.54, the highest since November 2022, with the euro down at $1.0299.

Oil prices rose over 1% due to cold weather in the U.S. and Europe driving up winter fuel demand. Brent futures were up at $77.14 a barrel. Gold prices also advanced, with spot gold rising to $2,670.09 an ounce and U.S. gold futures at $2,681.00 an ounce.



Read more at Investing.com: Treasury yields retreat, dollar strengthens with investors weighing Fed moves By Reuters