The decline in US treasury yields on Nov 1 is only partly due to the FOMC meeting. Ray Sharma-Ong, investment director, multi-asset solutions, at abrdn, says the US Treasury’s refunding announcement was smaller than expected and US domestic data showed that the ISM manufacturing index came in softer than anticipated.
The Federal Reserve governors left the Federal Funds Rate unchanged, albeit at a 22-year high, at the Federal Open Market Committee (FOMC) on Nov 1. Geopolitical tensions may have stayed the Fed’s hand, and that may weigh on equity markets in the short term.
“The increased macro uncertainty, and spiking geopolitical risks now facing markets means investors should be cautious on taking large outsized positions,” says JP Morgan Asset Management (JPMAM) in an update.
