- On additional wagers that the Federal Reserve is almost done with its rate-hiking cycle, the dollar continued its losing run. After a spike, Treasury bonds stabilised.
- The dollar dropped for a fourth day, and as traders became more confident about the possibility of Fed rate cuts, the currency is destined for its worst month since last November. Leading the advances in Asia were the Thai baht and South Korean won, with the former rising to its highest level in almost two weeks.
- Following a surge in the previous session, during which the yield on the two-year note—which is correlated with the Fed's rate path—dropped to its lowest level in a week, Treasury prices saw minimal movement. On Monday, benchmark 10-year rates decreased by eight basis points, to approximately 4.4%.
- As investor mood has improved and concerns of a recession have decreased, Wall Street forecasts have become more optimistic about the prospects for the coming year. This month's S&P 500 rise has been driven by bets that US policymakers are done raising interest rates, which has also helped to lower short-term volatility expectations.
