A split Fed, a steeper yield curve and Microsoft delivering

Markets reacted sharply after a divided US Federal Reserve opted to leave interest rates unchanged yesterday. The decision triggered a notable steepening of the Treasury yield curve, with 2-year yields edging lower while 30-year yields moved materially higher. US equities also came under pressure, with major stock indices posting significant declines. However, sentiment improved after the closing bell when despite Meta disappointing investors with weaker profit results, Microsoft reported stronger-than-expected earnings. In today's episode, Afonso Borges from our Fixed Income Research team unpacks the Fed's latest decision, explains the market reaction, and discusses what it could mean for investors in the months ahead.

• (00:00) - Introduction: Bernadette Anderko, Product & Investment Content
• (00:45) - Markets wrap-up: Roman Canziani, Head of Product & Investment Content
• (06:29) - Analysis of FOMC meeting: Afonso Borges, Fixed Income Research
• (12:24) - Closing remarks: Bernadette Anderko, Product & Investment Content

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