Why the Bond Market Is Watching Treasury Over the Fed

The video discusses the significance of the Treasury refunding announcement, suggesting it may overshadow other economic data like the FOMC decisions and jobs report. The Fed is expected to hold rates steady, and the labor market remains strong with a low jobless rate. Recent deficit figures and GDP growth highlight the need for increased Treasury issuance, shifting market focus to how the Treasury will manage the deficit.

What event does BMO consider to be the most significant for the bond market?

• Inflation data

• Treasury refunding

• Jobs report

• FOMC meeting

What is the Federal Reserve's current stance on interest rates?

• Holding rates steady

• Planning to decrease rates

• Planning to increase rates

• Uncertain about rate changes

What is the current jobless rate mentioned in the discussion?

• 4.2%

• 3.8%

• 4.5%

• 3.5%

What recent economic data was highlighted as influencing market focus?

• Doubling of the deficit

• Decrease in GDP

• Decrease in unemployment

• Increase in inflation

What was the GDP growth rate mentioned in the discussion?

• 4.0%

• 5.2%

• 4.9%

• 3.5%