On November 20, a data fog exacerbated uncertainty surrounding Federal Reserve policy, as many Fed officials expressed concerns about sticky inflation and remained cautious about further rate cuts. This also kept U.S. Treasury yields within a relatively narrow range, as traders awaited new catalysts to alter market pricing.
Michael Lorizio, head of U.S. interest rates and mortgage trading at Manulife Investment Management, said, "We have been lacking guidance from top-tier economic data for far too long, and it is difficult to form a highly confident judgment about the current state of the U.S. economy until we start seeing the data coming out."
The upcoming release of the minutes from the Federal Reserve's October meeting may further reveal how many policymakers might oppose a rate cut in December. "When there seemed to be a lot of disagreement before, today's summary of the minutes could help shape market expectations for the December meeting," said Lorizio. (Jinshi)
