Pausing of Global Central Banks' Tightening Cycle Expected to Benefit Malaysian Bond Market
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#1afbfd58 ver:1.22
The US Federal Reserve's decision to keep interest rates unchanged in its recent policy meeting has prompted bond traders to cautiously reload wagers on rate cuts, according to a report from Bloomberg. The prospect of lower rates has increased the appeal of shorter-dated obligations, particularly those due in around five years or less. This renewed interest in bonds reflects a similar trend that occurred in late 2023 when the Treasury market rallied as expectations grew that policymakers would reduce rates in 2024. Rates traders are now anticipating the start of the Fed's easing cycle in June, after initially expecting a rate cut in March. For the entire year, they foresee slightly more rate reductions than the Fed's median forecast of 75 basis points. Meanwhile, economists project that th...
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