US 10Y TREASURY: supporting 3.6%The Federal Reserve decided to halt its rate increase in June, acting exactly as the market was anticipating. However, this is not the long-awaiting Fed`s pivoting point. As per Fed Chair Powell, there would most certainly be two more rate hikes until the end of this year. This would eventually mean that the benchmark rate might go as high as 5.6% by the end of this year. So, the market was left as of the end of the previous week to digest Fed's comments and decisions during the weekend. On a positive side is that the inflation in the US is slowing down, reaching 4% in May on a yearly basis.
As of the end of the previous week, the 10Y Treasuries reverted by 7 points on Friday, ending the week at level of 3.7%, after reaching 3.8% during the week. Current charts are pointing to a potential for further weakening of the 10Y yields, in which sense, the level of 3.6% might be tested for one more time in the week ahead. Still, risks to the upside in the coming period should not be overlooked.