Treasuries investors whipsawed by President Donald Trump’s trade and fiscal policies will this week glimpse the impact on the Federal Reserve’s interest-rate policy.

While Fed Chair Jerome Powell and his colleagues are set to keep their benchmark steady at the June 17-18 meeting, traders will scrutinize economic and interest-rate projections for insight into how policymakers may respond to the uncertainty. 

Markets ended Friday pricing in a roughly 80% chance the Fed next lowers rates in September, with less than two quarter-point cuts fully priced in by year-end. A rally in Treasuries last week was tempered Friday as escalating geopolitical tensions led to a surgein oil prices. 

What To Watch

  • Economic data:

    • June 16: Empire manufacturing; import and export price index

    • June 17: Retail sales; import and export prices; NY Fed services business activity; industrial production; capacity utilization; business inventories; Manufacturing (SIC) production; NAHB housing market index

    • June 18: MBA mortgage applications; Housing starts; building permits; initial jobless claims; TIC flows

    • June 20: Philadelphia Fed business outlook; leading index

  • Fed calendar:

    • June 18: FOMC rate decision

  • Auction calendar:

    • June 16: 13-, 26-week bills; re-opening of 20-year bonds

    • June 17: 6-week bills; re-opening of 5-year TIPS

    • June 18: 4-, 8-, 17-week bills

. Read more on Markets by NDTV Profit.A rally in Treasuries last week was tempered Friday as escalating geopolitical tensions led to a surgein oil prices.  Read MoreMarkets, Business, Bloomberg 

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