By Martin Baccardax | The Street
U.S. stocks moved firmly higher in early Friday trading, while Treasury yields and the dollar were largely unchanged, as investors reacted to a key speech from Federal Reserve Chairman Jerome Powell that could clarify the central bank’s plans for autumn rate cuts.
Bond market are rallying hard on the back of Powell’s Jackson Hole address, but bets on an outsized 50 basis point rate cut in September are moving only modestly higher, with the bulk of the odds from the CME Group’s FedWatch pointing to a 25 basis point reduction.
Benchmark 10-year Treasury note yields were last marked 5 basis points lower from prior to Powell’s remarks at 3.801%, while rate-sensitive 2-year notes fell 6 basis points to 3.935%.