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More cuts are expected in the coming months, though Costa didn't provide any details on future decisions. Costa said the bank has already incorporated high interest rates from the U.S. Fed and other central banks from developed economies in its September report. "But we have to keep looking closely at U.S. rates," Costa said. Costa added the bank has also factored in weaker demand from China, one of Chile's largest copper consumers, but the impact was larger than expected. "The Chinese economy is going to develop with less force than expected, but there are other factors that hold up copper prices," Costa said.
Persons: Central Bank of Chile Rosanna Costa, Susana Vera, Rosanna Costa, Costa, Costa didn't, Jorgelina, Alexander Villegas, Chizu Organizations: Central Bank of, Reuters, International Monetary Fund, World Bank, REUTERS, U.S . Fed, Thomson Locations: Central Bank of Chile, Marrakech, Morocco, MARRAKECH, SANTIAGO, Chile, U.S, China, Rosario
The benchmark 10-year Treasury yield was trading at around 3.7650% at around 3:40 a.m. The yield on the 2-year Treasury was up by around two basis points to 4.5372%. Treasury yields climbed on Wednesday as investors looked to the release of U.S. Federal Reserve meeting minutes, which could provide clues about future monetary policy. Investors are hoping to gain further insights into whether the Fed will slow interest rate hikes and what it will take for them to be paused entirely when the central bank's November meeting minutes are released on Wednesday. Concern about the pace of rate hikes leading the U.S. economy into a recession has spread among traders.
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