[US Treasury Yields Fall Slightly as Market Focuses on Fed Policy Decision] ⑴ US Treasury yields fell slightly. While traders continue to closely monitor the situation in the Middle East, market focus is shifting to Wednesday's Federal Reserve policy decision, with interest rates expected to remain unchanged at 3.50%-3.75%. ⑵ The market will be watching for clues about the future policy path, with money market pricing indicating a risk of a slight rate cut this year. Amanda Sundstrom of Swedish bank said in a report: "In the short term... given the high degree of uncertainty, the Fed is likely to take a wait-and-see approach, and we predict a rate cut in December." ⑶ The two-year Treasury yield fell 0.4 basis points to 3.838%; the ten-year Treasury yield fell 0.6 basis points to 4.346%.

[Dollar Rises Slightly as Markets Await Fed Decision] ⑴ The dollar rose slightly on Wednesday as investors closely watched the Federal Reserve's highly anticipated interest rate decision—likely Chairman Powell's farewell address. Meanwhile, the ongoing conflict in the Middle East casts waning hopes for a resolution. ⑵ Trading was thin in early Asian trading, with limited fluctuations across currencies, influenced by the Japanese market being closed for a holiday and several central banks' upcoming interest rate decisions. The euro fell 0.07% against the dollar to 1.1705, and the pound fell 0.05% against the dollar to 1.3513. ⑶ The Fed's policy decision, to be announced later today, is the market focus. The market widely expects the Fed to maintain interest rates, but attention will be on its assessment of the economic impact of the war and Chairman Powell's future moves. (4) Carol Kong, a foreign exchange strategist at the Commonwealth Bank of Australia, said, "The question is what Powell will do next. Since his term as a Fed governor doesn't expire until 2028, will he choose to resign after his term ends, or will he remain on the board, somewhat playing the role of a shadow chairman?" (5) The US dollar index held steady at 98.68. The US dollar was essentially unchanged against the Canadian dollar at 1.3685, with the Bank of Canada scheduled to announce its interest rate decision on Wednesday. Geopolitically, efforts to end the US-Israel war against Iran have stalled, market sentiment remains fragile, and the US dollar was supported by safe-haven demand.

[World Gold Council: Global Gold Demand Reaches 1,231 Tons in Q1, Central Banks Increase Reserves by 244 Tons] ⑴ The World Gold Council's Q1 2026 Global Gold Demand Trends report, released on April 29, shows that global gold demand (including over-the-counter transactions) reached 1,231 tons in the first quarter, a 2% year-on-year increase; total demand value surged to a record $193 billion, a 74% year-on-year increase. ⑵ According to statistics, global central banks increased their gold reserves by 244 tons in the first quarter. Although a few official institutions, such as Turkey, Russia, and the Azerbaijan National Petroleum Fund, increased their gold sales, global central bank gold purchases remained higher than the previous quarter's level and the five-year average.