BNP Paribas closed out its short positions in 10-year US Treasuries after the Federal Reserve cut interest rates.
AI Summary1 min read
TL;DR
BNP Paribas closed its short position on 10-year US Treasuries after the Fed's rate cut, initiated at 4.09% yield and closed at 4.15%. Analysts warn of pressure on interest rates ahead of non-farm payroll data due to Fed's policy response and labor market concerns.
Tags
BNP ParibasUS TreasuriesFederal Reserveinterest ratesnon-farm payroll
According to Mars Finance, citing Jinshi, BNP Paribas stated in its analyst report that it had closed out a short position in 10-year US Treasury bonds after the Federal Reserve cut interest rates as expected. The bank initiated the position at a yield of 4.09% and closed it at 4.15%. Analysts say the Fed's unbalanced policy response mechanism will put pressure on the interest rate market ahead of the next non-farm payroll data release. Despite the divided vote in the Fed's decision, policymakers are emphasizing the weakness in the US labor market.