Bond traders face volatile 2025 amid Fed policy shifts

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 📈 Stocks / Finance

Bond traders face volatile 2025 amid Fed policy shifts

Bond traders grapple with an unusual rate-cutting cycle, as 10-year Treasury yields surged over 0.75% since September, marking the largest jump since 1989. Persistent inflation and a resilient economy complicate forecasts, favoring short-term steepener strategies, while long-term bonds see limited demand.

Gold gains as inflation data eases Fed concerns

Gold prices rose 0.4% to $2,631.89 per ounce after softer U.S. inflation data increased expectations of Fed easing in 2025. The PCE index rose 2.4% annually, below forecasts. Analysts noted short-covering and technical support, while Trump’s policies could add volatility to bullion markets.

US stocks rise on inflation data but rate concerns linger

US stock futures climbed as softer PCE inflation data showed annual inflation easing to 2.4%, slightly below expectations. Despite a Fed rate cut, projections for 2025 now include only two cuts versus four previously, keeping rates elevated. Tech led Friday's rebound, offsetting weekly losses.

🪙 Crypto

Bitcoin faces bearish signals with $20K drop risk

Bitcoin's price shows vulnerability as it forms a bearish engulfing pattern, losing key support levels and signaling a potential multi-week correction. Analysts warn of a possible pullback to $80K or lower, fueled by liquidity concerns and macroeconomic factors, including declining global money supply.

🌎 Global Economy

Taiwan leads Asian markets while global uncertainties loom

Taiwan's Taiex surged 28.85% in 2024, buoyed by AI-driven tech growth, while South Korea's Kospi dropped 8.03%, hindered by political instability and export challenges. Analysts cite Trump's tariff policies, China's slowing growth, and diverging monetary policies as key risks for 2025 across Asia.

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