In the Asian session on Wednesday (June 7), the U.S. dollar index fell back from its high level. The latest price of the U.S. dollar was 104.04, a decrease of 0.09%. Economist Mohit Kumar said bond markets were unlikely to experience much volatility ahead of next Tuesday’s release of U.S. CPI inflation data. Next Tuesday, the United States will release CPI data, and the Federal Reserve will announce its interest rate decision on Wednesday.
The latest from the Federal Reserve:
Between now and (June 13), there won‘t be much data that could move the market, he said. Positioning in the fixed income space is fairly light, suggesting there is no significant unwinding pressure. During these quieter times, Jefferies is happy to hold a small amount of long-term U.S. Treasuries, Kumar said. He added that the Fed‘s “control period” that began this week meant limited commentary from central bank officials. A blackout period is when central bank officials refrain from communicating with markets before making a policy decision.
