TD Securities’ Global Strategy Team notes that US rates moved higher as the S&P 500 reached a record high, with comments from Treasury Secretary Bessent acknowledging eventual Federal Reserve rate cuts but allowing for a pause. The report points to upcoming jobless claims, industrial production and Fed speeches as key near-term drivers for Dollar and Treasury market sentiment.

Higher yields with focus on data and Fed

"Rates moved higher on Wednesday while the S&P 500 hit its all-time high. Treasury Secretary Bessent said that eventually the Fed will cut rates, but understands if the Fed needs to wait before lowering rates again. Bessent also said that they won't renew Iranian and Russian oil waivers."

"Treasury released data for international capital flows for February, which showed that foreigners increased their Treasury holdings by $197.7bn."

"On Thursday, jobless claims and industrial production data will be released. Fed's Miran and Williams will speak in the morning with Williams providing a keynote address and a Q&A. Markets will continue to focus on news coming from the Middle East as we head towards the weekend."

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