Rate cut hopes dashed

OVER the past three weeks, the US fixed income market has seen the key benchmark 10-year US treasury rates rise to as high as 4.79%, an increase of 25 basis points (bps) since its close at 4.54% at the end of last year and was last seen at the 4.61% level.

The 10-year reached its highest point in eight months on concerns of sustained inflationary pressure, which has also led the US dollar to extend its 7% gain in 2024 with a year-to-date gain of 0.4%.