NEW YORK, Sept 30 — MSCI’S global equities ended yesterday’s choppy session slightly lower as investors prepared for a likely US government shutdown and adjusted portfolios for the quarter’s end.
Earlier data also showed headline inflation in Europe rising more slowly than expected and at its lowest level in two years.While New York Fed President John Williams said the central bank is likely at or near peak rates, he said he still expects it will need to stay restrictive “for some time.” Traders were betting on an 85.8 per cent probability that the Fed would keep rates steady at its next meeting in November compared with an 80.7 per cent probability on Thursday, according to the latest data from CME Group’s Fedwatch tool.
In currencies, the dollar was headed for its biggest quarterly gain in a year and gains for the 11th consecutive week while Japan’s yen remained under scrutiny for potential government intervention. In US Treasuries, Benchmark 10-year yields were well above their lows of the day but still down 1.6 basis points at 4.581 per cent, from 4.597 per cent late on Thursday. The 30-year bond was last down 2.3 basis points to yield 4.7065 per cent. The 2-year note was last was down 1.3 basis points to yield 5.0582 per cent.