U.S. government bonds (US Bonds) have barely changed their daily returns during the trading day so far on Thursday, October 26, 2023, as investors, traders and other participants in the financial market are currently waiting and considering the outlook for the monetary policy of the central bank of the United States of America, the Federal Reserve System ( FED), when already next week on 31.10. and on November 1, 2023, there will be a currency policy meeting of the FED’s key committee, the Federal Open Market Committee (FOMC), which will discuss interest rates in the USA. It is the level of interest rates set by the FOMC FED that strongly influences the exchange value of the US dollar (USD) and the yield of US government bonds (US Bonds). Investors and other financial market participants weighed what might be on the near horizon for monetary policy as they looked to economic data for clues about the health of the economy. The FOMC is widely expected to leave interest rates unchanged, but bond market investors are hoping for signs of whether interest rates could be raised again later, but with the assumption still before the end of this year, 2023.
Currently, during the European Thursday afternoon on October 26, 2023, at approximately 13:30 CET, the 10-YR US Bond traded on the bond market with a yield of 4.972% p.a. with a daily growth of +0.019% of its revenue so far. The US government bond with a thirty-year maturity (30-YR US Bond) traded on the indicated day and time at the value of its yield in the amount of 5.108% p.a. with a daily growth of +0.016% yield so far. Short-term and medium-term US government bonds also showed a trading trend of increasing their yields during Thursday 26/10/2023, and for example the two-year US government bond (2-YR Bond) increased its yield by + 0.012% of the yield within the course of the trading day so far to a value of in the amount of 5.133% p.a.. The US bond with a three-year maturity date (3-YR Bond) then showed its annual yield in the amount of 5.487% p.a. with a daily growth of + 0.005% yield so far. These returns were achieved in a situation where the exchange value of the US dollar (USD) according to the data of the dollar index DXY (US Dollar Currency Index) showed growth again. The value of this DXY index on the indicated day and time showed a point status of 106.84 USD points with a daily growth of + 0.29% of the point value.
On Thursday, October 26, 2023, the first estimate of gross domestic product in the US for the third quarter of this year 2023 should be published, which, according to the Dow Jones estimate, should reflect growth of 4.7%. The latest personal consumption expenditure price index, which is a key inflation measure for central bankers from the FED, will follow on Friday. The data comes after Fed Chairman Jerome Powell said last week that inflation was still too high, despite easing slightly recently, and that slower economic growth was likely needed to return to the central bank’s 2% target. Also on Thursday 10/26/2023, weekly initial jobless claims and September durable goods orders and pending home sales data are expected. In this situation, during today’s European noon on 26/10/2023, the US dollar (USD) showed a positive increase in the exchange rate against the single European currency, the euro (EUR), and during the beginning of Thursday’s European afternoon at approximately 13:51 CET, this global currency pair, the euro (EUR) and the US dollar, as world reserve currencies, traded in the forex operations of the foreign exchange market at the mutual exchange rate value of 1.053 USD per EUR with the daily strengthening of the USD by + 0.265% against the EUR.