Following the inflation report, the Treasury yields have been raised higher, which reflects the concern about the market that the FED can delay the reduction of the rate longer than expected. The return of 10 years increased to 4,533%, an increase of 2.1 basic points, while the return of 2 years 2 base points achieved to 4,216%.
This meant a reversal of the relocation of Thursday lower, which was driven by a weaker than expected GDP report of the fourth quarter with 2.3% annual growth, below 2.5% prediction. The renewed focus on inflation data and Havikish Fed Retoric sent a backup of the yield, which strengthens the dollar strength.
Fed -officials signal patience, under pressure silver
FED policy makers continued to emphasize the need for more progress on inflation before the policy was facilitated. Chairman Jerome Powell repeated that the accelerations of the rate would require “real progress” when inflation or signs of weakness of the labor market. Fed-Gouverneur Michelle Bowman strengthened this position and pushed back on expectations for a short-term policy shift.
Traders have now priced a 70% chance that the first reduction in the FED rate will be in June, with a second reduction probably postponed until October. The repetition of tariff expectations has held the dollar company and weighed on Silver’s assets to retain profit.