Currently, markets are pricing in a 66.3% probability that the Fed will cut interest rates by at least 25 basis points (bps) from the range of 4.50% to 4.75% after its next meeting on December 18, according to the CME FedWatch tool.
Morningstar says the 10-year Treasury yield slipped to its lowest level since late October. “The latest dip comes after economic growth concerns saw European sovereign yields fall when Wall Street was shut, and despite a raft of reports released the day before that pointed to still-healthy economic activity in the US,” notes a Morningstar report.
Investors will be keeping an eye out for data and anecdotes relating to Black Friday spending, with the market expecting confirmation that consumers remain relatively stoic, the report says.
