Why Treasury Yields Are Rising Despite Rate-Cut Expectations By Hardika Singh
The yield on the 10-year note has climbed since the start of the year, propping up mortgage rates. Meanwhile, Latin American immigrants are starting businesses at more than twice the rate of the U.S. population as a whole, and card networks would cap credit-card interchange fees for five years as part of a settlement. Read on for this news and more.
Top News Why Treasury Yields Are Rising Despite Rate-Cut Expectations
The Federal Reserve keeps promising interest-rate cuts. Treasury yields, a key driver of mortgage rates and other borrowing costs, keep rising anyway. The climb has surprised many on Wall Street, who had expected yields to fall, and frustrated Americans who have been waiting for mortgage rates to ease from two-decade highs.
Grant's Take The Housing Market Is Great-If You Don't Need to Move
How strong is the U.S. housing market? It depends whom you ask. Things are going swimmingly for existing homeowners with no plans to move out, according to fresh data released Tuesday. The trouble for everyone else: A limited supply of homes available for sale is a key factor pushing prices higher.
U.S. Economy Latinos Are Starting U.S. Businesses at a Torrid Pace
The jump in Latino entrepreneurship has driven up the overall share of new businesses owned by immigrants, who accounted for 36% of launches last year compared with 25% in 2019, according to a new analysis of Census Bureau data. New-business creation by white and native-born Americans has slowed in the past two years, following a broad surge early in the pandemic.
Financial Regulation Roundup Visa, Mastercard Agree to Lower Swipe Fees, Settling Long-Running Lawsuit
Visa, Mastercard and the largest U.S. credit-card issuing banks have agreed to a settlement with merchants that have been suing them for nearly two decades over the fees they charge for swiping credit cards.
Forward Guidance Wednesday (all times ET)
6 a.m.: European Union business and consumer surveys for March
10:30 a.m.: Dallas Fed energy survey
6 p.m.: Fed's Waller speaks on economic outlook to the Economic Club of New York
Thursday
8:30 a.m.: U.S. weekly jobless claims
8:30 a.m.: Canada gross domestic product
8:30 a.m.: U.S. gross domestic product, third estimate for fourth quarter 2023
10 a.m.: University of Michigan consumer sentiment survey
Research Elevated U.K. Services Inflation, Wage Growth Could Delay BOE Rate Cut
It is getting harder for the Fed to bring inflation down to its 2% target "because of the immediate positive impact on the economy of record-high stock prices," overwhelming the impact of monetary policy, Apollo's Torsten Slok says in a note. He attributes the strength of U.S. economic data to a stock market rally that started when the Fed turned dovish late last year. "Maybe the lagged effects of Fed hikes work after 12 to 18 months," Slok says. "However, the effects of easy financial conditions on consumer spending are immediate." - Paulo Trevisani
Basis Points Larry Fink sees a global retirement crisis brewing. The 71-year-old chief executive of BlackRock says an aging population is stressing retirement safety nets such as Social Security, an issue that is set to worsen as medical breakthroughs like weight-loss drugs extend people's lives. - Jack Pitcher Canada's poor labor productivity has become a national emergency , the Bank of Canada's No. 2 official said Tuesday, adding that the trend needs to be reversed to help the economy guard against future bouts of inflation. - Paul Vieira The Japanese yen hit its weakest level against the dollar in 34 years on waning expectations that the Bank of Japan would raise interest rates further after it dropped its negative interest rate policy last week. - Kosaku Narioka Feedback Loop
This newsletter is compiled by Hardika Singh in New York.
Send us your tips, suggestions and feedback. Write to:
[hardika.singh@wsj.com]
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
03-27-24 0716ET
