Fed Preview
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What’s in Today’s Report:
- FOMC Preview: Hawkish-If vs. Dovish-If
- 10-Yr Treasury Note Yield Hits 2024 High: Chart
U.S. equity futures are giving back some of yesterday’s tech-led rally as there was a modest “sell the news” reaction to NVDA’s new AI chip (Blackwell) release while central bank decisions overnight favored policy doves.
Overnight, the BOJ delivered a dovish hike and the RBA signaled an end to rate hikes which sent both currencies lower and bolstered the dollar as this week’s Fed decision comes into focus.
Today, there is just one economic report to watch: Housing Starts (E: 1.449 million) and the Treasury will hold a 20-Yr Bond auction at 1:00 p.m. ET. Neither should meaningfully move markets ahead of the Fed, but if the housing data is hot or there is weak demand for the Bonds (sending yields higher) we could see a hawkish/risk-off move in markets today.
The March FOMC meeting begins today and barring any material “tape bombs” the markets should fall into a familiar positioning churn ahead of tomorrow’s policy announcement and Powell’s press conference.
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