Live Markets: US Treasury yields in a Powell exit scenario
22/07/2025 10:38
STOXX 600 down 0.4% Trade concerns persist Chemicals stocks underperform after earnings Wall St futures flat Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com US TREASURY YIELDS IN A POWELL EXIT SCENARIO Risks to Federal Reserve independence have been in the spotlight after U.S. President Donald Trump stepped up his attacks on Chair Jerome Powell for resisting calls to cut rates. Analysts say Powell’s dismissal could drive short-dated yields lower on expectations of a more dovish Fed, while long-dated yields might rise amid heightened inflation concerns. Deutsche Bank analysts crunched the numbers to gauge the potential market fallout. "These results suggest the clearest trading expression in rates of Fed independence/fiscal dominance risks is in front-end real/long-end nominal steepeners,” Deutsche Bank analysts say. The so-called belly of the curve — the 5-year maturity — is expected to remain stable, with no significant change in yields. (Stefano Rebaudo) ***** EARLIER LIVE MARKETS POSTS: EUROPE BEFORE THE BELL: FUTURES LOWER AS MARKETS WATCH EARNINGS, TRADE TALKS CLICK HERE EUROPE INC BRACES FOR PAIN FROM A STURDY EURO CLICK HERE The euro has surged 15% against the dollar this year https://reut.rs/3Ufh8TV Expectations of Q2 2025 STOXX 600 earnings' year-on-year growth rate https://reut.rs/3GMUQFY European stocks suffer nervy start https://reut.rs/3Unoyo7 DBUST https://tmsnrt.rs/4o1Lp6q