Financial markets will close early on Wednesday and will remain closed on Thursday in observance of the Fourth of July holiday. Investors are eagerly awaiting important data, including minutes from the latest Fed meeting, as well as readings on imports, exports, the services sector, and ADP’s private payrolls report. Additionally, the June jobs report will provide further insights into economic trends and potential impacts on interest rates.
On Wednesday, yields on Treasury bonds remained stable despite investors anticipating important data and reflecting on comments made by Federal Reserve Chairman Jerome Powell. At 3:34 a.m. ET, the yield on the 10-year Treasury was slightly up at 4.4375%, while the 2-year Treasury yield had increased by more than one basis point to 4.7538%. Powell mentioned progress in addressing inflation concerns, noting that recent readings indicated a move towards disinflation. However, he emphasized that the Fed needed more assurance before considering rate cuts.
Powell and other policymakers expressed a desire for confidence in inflation trends before making policy adjustments. As such, investors are closely watching for any signs of instability in inflation figures or changes in monetary policy from the Fed before making their own investment decisions.