Market Comment | Sovereign yields decline amid renewed uncertainty

Summary

The International Monetary Fund has released its annual External Sector Report and it focuses on the need to avoid policies that distort trade. Sovereign treasury yields slipped after Fed officials reinforced expectations that they would cut interest rates this month.

Key points

• Key points:
• Powell insisted that the Fed will act appropriately to sustain the economic expansion.
• Treasury yields slip after Fed officials reinforced expectations that they would cut interest rates this month.
• Peripheral risk premiums halted its downward trend.
• The FMI said that the U.S. dollar was overvalued by 6% to 12% based on fundamentals.

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