The Impact of Economic Data on Interest Rates

Economic data is influencing U.S. Treasury yields, which are currently rising, leading to speculation that the Federal Reserve will not lower interest rates until after July. This trend is linked to inflationary pressures, as investors adjust their expectations based on real news versus market sentiment. Despite fluctuations in market narratives based on economic announcements, the overall trend suggests earnings reports will significantly impact market movements in the upcoming earnings season. The anticipation surrounding major bank earnings hints at a continued emphasis on equities as investors weigh the implications of rising asset prices amid shifting economic indicators.