UBS predicts earlier than expected rate cuts as traders ignore central bankers

<p>UBS remarks on the Federal Open Market Committee (FOMC) minutes.&nbsp;UBS assess that rate cuts will have to come sooner than the Fed is telling us.&nbsp;</p><p>UBS also remarks on three-year-olds trading Treasuries:</p><ul><li><em>Central bankers keep stressing rates will stay high—the Federal Reserve minutes signalled much the same message. </em></li><li><em>Markets are not paying attention. There is a sense that central bankers are trying to manipulate the bond market vigilantes—but bond traders are like three-year olds at a party who are high on sugar and will not be controlled. </em></li><li><em>Investors are increasingly looking at the disinflationary details of advanced economy consumer prices and speculating on rate cuts having to come sooner.</em></li></ul><figure data-media-><img src="https://images.forexlive.com/images/US%2010%20year%20yield%2023%20November%202023_id_f27ab7b5-eb7f-4506-8e7d-d1795ef4a7e2_size900.jpg" alt="US 10 year yield 23 November 2023" width="844" height="484" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/US%2010%20year%20yield%2023%20November%202023_id_f27ab7b5-eb7f-4506-8e7d-d1795ef4a7e2_size900.jpg" /></figure><p><br></p>

This article was written by Eamonn Sheridan at www.forexlive.com.