U.S. Treasury bonds gain slightly - market participants await Fed minutes

The positive trend of US Treasury bonds continued as the future for ten-year government bonds climbed slightly on opening day, resulting in a yield decline to 4.27 percent. Markets are now turning their attention to the upcoming Federal Reserve minutes, the details of which are eagerly anticipated. Observers are particularly interested in how the members of the US central bank reconcile the current economic conditions—a robust economy coupled with easing inflation—with the ongoing tight monetary policy. As the analysis experts from Unicredit comment, the minutes could contain informative details about the extent to which balance sheet reduction pace will be a topic of discussion. Federal Reserve Chairman Jerome Powell recently mentioned that a more in-depth debate on this is not expected until March. Despite the uncertainties that may arise from the meeting, analysts at Unicredit continue to forecast a potential interest rate cut in the coming June. This reflects the expectation that the central bank may make an adjustment to its policy in order to adequately respond to economic developments.