Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

BOND REPORT : Treasury Yields Continue Lower After Fed Fails To Signal Quicker Pace Of Rate Hikes

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/20/2017 | 09:22pm CEST

By Joseph Adinolfi, MarketWatch

Treasury yields declined Monday as the Federal Reserve's unwillingness last week to signal a more aggressive pace of interest-rate hikes helped support the battered Treasury market.

The yield on the 10-year note shed three basis points to 2.472%, its lowest end-of-day level in three weeks, while the yield on the two-year note , typically the most sensitive to interest-rate expectations, declined two basis points to 1.296%. The yield on the 30-year bond shed 2.4 basis points to 3.088%.

Yields, which fall as prices rise, finished lower last week after the Fed raised its benchmark interest-rate target by a quarter of a percentage point to a range of between 75 basis points and 1% -- its second such hike over the past three months.

Typically, such a move would be expected to push yields higher. But the central bank left its projections for the pace of interest-rate hikes over the coming year essentially unchanged, disappointing some investors who had expected the central bank to signal that future hikes would happen more swiftly than previously believed.

"I think there was an expectation that the Fed would become extremely hawkish, and that just wasn't justified," said Gennadiy Goldberg, interest-rate strategist at TD Securities.

Chicago Fed President Charles Evans said he would support raising interest rates four times in 2017 if there's a substantial pickup in inflation . But his remarks had little impact on the market despite his place on the Fed's interest-rate-setting committee.

Meanwhile, his colleague, Minneapolis Fed President Neel Kashkari, explained his rationale behind voting to leave interest rates on hold last week during an interview with CNBC (http://www.cnbc.com/2017/03/20/feds-kashkari-says-his-vote-against-rate-hike-is-based-on-lack-of-inflation.html) on Monday morning, saying he opposed the hike because inflation is lagging. Kashkari had previously released a statement saying he was the only Fed policy maker to vote against raising interest rates at the central bank's meeting last week.

The latest reading from the University of Michigan consumer confidence survey , released Friday, also helped rein in yields by showing that long-term inflation expectations had declined.

Meanwhile, FBI Director James Comey and National Security Agency Director Michael Rogers both testified before the House Intelligence Committee on Monday, but their comments appeared to have little impact on the bond market.

Confirmation hearings for Neil Gorsuch, President Donald Trump's nominee to succeed Antonin Scalia on the Supreme Court, also began on Monday.

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
02:55p MOBIL'NYE TELESISTEMY : MTS PJSC Placed RUB 10 bln Exchange-traded Series 001P-02 Bonds
02:55p AGELLIS : supplies leading global steel producer with LadleSafe monitoring system
02:55p ANTI CORRUPTION COMMISSION OF BHUTAN : Interactive Session with Technical Training Institute, Samthang
02:55p SUCCESS UNIVERSE : Announcement of Final Results for the Year Ended 31 December 2016
02:55p TRAKCJA PRKII : Wins Another Railway Contract
02:55p REDSTAR GOLD : Appoints Mark T. Brown as Chief Financial Officer
02:55p MINISTRY OF FINANCE OF RUSSIAN FEDERATION : Quarterly report on regional budgets execution (starting from January 1, 2011)
02:55p ALPHA TRUST ANDROMEDA INVESTMENT TRUST : Announcement regarding the purchase of treasury shares
02:55p GAMESA CORPORACION TECNOLOGICA : The Company announces the appointment of Mr. Luis Javier Cortés Domínguez as new external independent director of the Board of Directors, in substitution of Mr. Francisco Javier Villalba Sánchez, who resigns from his post
02:55p TRAKCJA PRKII : Diversification of Business and Increase in Revenue
Latest news
Advertisement
Hot News 
-5.10%H & M HENNES & MAURITZ : &M Profit Slips as Toug Retail Conditions Dent Sales Growt
1.02%India's Mahindra Plans Electric Vehicles for U.S. and China
-1.75%SSE : says 2017/18 dividend cover to be at lower end of guidance
-2.93%Mexico's governors tap investors in China, elsewhere
8.15%GENEL ENERGY : targets Turkey gas deal this year to overcome oil troubles
Most Read News
03/29 ConocoPhillips sells oil and gas assets to Cenovus for $13.3 billion
04:54a AMERICAN INTERNATIONAL : Lloyd's of London chooses Brussels for EU base on strong regulation
02:52aDJH & M HENNES & MAURITZ : &M Profit Slips as Toug Retail Conditions Dent Sales Growt
06:38a H&M invests in supply chain as fashion rivalry intensifies
06:39a Saudi Aramco formally appoints banks to advise on share sale
Most recommended articles
03/29DJS&P 500, Nasdaq Futures -- Technical Analysis
03/27 Dollar hits four-month low as Trump trade deflates
08:48a Batteries included as Hyundai amps up electric car ambitions
08:47a Westinghouse wins UK reactor approval from nuclear regulator
08:47a Euro dips as price data further dampens ECB hike bets