USD: Fed patience tempers 2026 easing hopes – Deutsche Bank

Deutsche Bank analysts highlight patient-sounding Federal Reserve commentary as officials stress the need for more evidence of inflation moving toward 2% before easing. Governor Barr signalled rates may stay steady for some time, prompting markets to slightly reduce 2026 rate-cut pricing. Two-year Treasury yields edged higher, while longer maturities were little changed, leading to modest curve flattening.

Fed rhetoric reins in cut expectations

"Alongside the data, we received some patient-sounding Fed commentary."

"Fed President Goolsbee reiterated that further evidence of inflation moving back towards 2% would be required before easing, while Fed Governor Barr said that “it will likely be appropriate to hold rates steady for some time”."

TMGM tahlili: Moliyaviy bozor yangiliklari, iqtisodiy kalendar va bozor tahlillari

"Markets slightly dialed down expectations for rate cuts, with 60bps of 2026 easing priced by yesterday’s close (-2.3bps on the day)."

"In turn, 2yr Treasury yields edged higher (+2.7bps), while 10yr (+1.1bps) and 30yr (-0.6bps) saw muted moves, resulting in some curve flattening."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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