The U.S. economy grew at an annualized rate of 4.3% in the third quarter, marking the fastest expansion in two years. This robust growth has influenced market expectations, with 10-year Treasury yields reaching an intraday high of 4.165%. On-chain data indicates a decline in Treasury prices, while U.S. bonds outperformed their German and U.K. counterparts by 3 and 2 basis points, respectively.
The strong GDP figures have also impacted Federal Reserve policy outlooks, reducing the likelihood of a rate cut in January. The probability of a Fed rate cut has decreased to 3 basis points from a previous 4, reflecting a shift towards potential rate hikes in response to the economic data.
U.S. Q3 GDP Growth Alters Fed Rate Hike Expectations
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