Financial Markets Daily Report 17 June 2021
The Fed held its benchmark short-term interest rate and said it will continue to buy $80 billion in Treasury securities and $40 billion in mortgage-backed securities each month. Policymakers now see the first rate increase coming in 2023 instead of 2024.
- The Fed held its benchmark short-term interest rate and said it will continue to buy $80 billion in Treasury securities and $40 billion in mortgage-backed securities each month. Policymakers now see the first rate increase coming in 2023 instead of 2024.
- The S&P 500 Index fell as risks of quicker hikes in interest rates weighed on sentiment, with the utilities and consumer staples sectors leading losses while bank stocks rallied. European shares posted their ninth successive record high, as investors rotated out of cyclical sectors into defensives.
- U.S. 10-year yields rose as much as 10 basis points to 1.59%. The Bloomberg Dollar Spot Index jumped as much as 0.9%, the biggest one-day gain since June 2020.
- Today, the focus will be on BoJ Monetary Policy Meeting. Also, data on U.S. initial claims and Leading Indicators will be released.