Chart of the day - TNOTE (13.01.2025)

12:57 PM 13 January 2025

US bond yields have recently been recording record increases on the wave of investor concerns about the return of the Fed’s restrictive monetary policy in 2025. The two main factors supporting this scenario are the start of Donald Trump’s new term in January and the return of inflationary pressure. Essentially, the second factor is also somewhat related to Trump’s policy and fears of a strong turn by the US toward protectionism.

Yields on ten-year US bonds have remained in a strong upward trend basically since the announcement of the US presidential election results.

In recent months, we have experienced a rare event — an increase in ten-year bond yields accompanied by interest rate cuts. Investors have also lowered their expectations for rate cuts from two reductions just a week ago to barely one cut in the last quarter of 2025.

As a result, TNOTE prices were pushed to record-low levels and are now only 1.90% above the bottom of the interest rate hike cycle at the end of 2023. Currently, however, nothing indicates that the Fed is going to return to raising interest rates. In this regard, the most important factors will be inflation data and a sustained increase in price pressure — longer than two or three consecutive months. TNOTE quotes are losing another 0.15% today, dropping to 107.26 points. Source: xStation 5

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits