Morning View
The Eurozone and the UK are keeping their benchmark interest rates unchanged
International
Yesterday, the European Central Bank (ECB) and the Bank of England (BoE) held their monetary policy meetings. In both cases, they kept interest rates unchanged at 2.15% and 3.75%, respectively. ECB President Christine Lagarde noted that it is still too early to declare victory over inflation due to wage pressures, while the BoE emphasized that monetary policy will remain restrictive until second-round inflation risks subside.
Major U.S. stock indices edged lower yesterday. The S&P 500 fell -0.3%, as did the Nasdaq, which also dropped -0.3%, and the Dow Jones -0.4%. So far in 2026, the indices have accumulated changes of -3.5%, -5.0%, and -4.2%, respectively.
Meanwhile, U.S. Treasury yields moved mixed yesterday. The 1-year Treasury yield rose from 3.68% to 3.72%, and similarly, the 3-year Treasury yield rose from 3.78% to 3.79%. In contrast, the 10-year Treasury yield fell from 4.27% to 4.26%.
Source: PUENTE Hnos, Bloomberg
The U.S. Federal Reserve kept its benchmark interest rate unchanged, at 3.50%-3.75%
International
At yesterday's monetary policy meeting, the Federal Reserve kept the benchmark interest rate unchanged in the range of 3.50%–3.75%, a decision in line with market expectations. Regarding macroeconomic projections, the Fed slightly revised upward its GDP (Gross Domestic Product) growth estimate for 2026, while the “dot plot” maintains the projection of a rate cut before the end of the year, subject to inflation trends. During the press conference, Fed Chair Jerome Powell struck a cautious tone, noting that the implications of the conflict in the Middle East on the U.S. economy remain uncertain and that, if there is no progress on disinflation, rate cuts will not proceed. Powell also emphasized his commitment to the institution’s independence, assuring that monetary policy will continue to be guided by data rather than a pre-set course.
Major U.S. stock indices fell across the board yesterday. The S&P 500 dropped by -1.4%, while the Nasdaq fell by -1.5%, and the Dow Jones by -1.6%. So far in 2026, the indices have accumulated declines of -3.2%, -4.7%, and -3.8%, respectively.
Finally, U.S. Treasury yields rose yesterday. The 1-year Treasury yield rose from 3.62% to 3.69%, while the 3-year Treasury yield moved in the same direction, from 3.68% to 3.78%. Meanwhile, the 10-year Treasury yield rose from 4.20% to 4.27%.
Source: PUENTE Hnos, Bloomberg
