Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexEconomic EventsPress releases

BOND REPORT : Treasury Yields Plummet As Fed Hints That Rate Hikes Will Be Low And Slow

share with twitter share with LinkedIn share with facebook
share via e-mail
06/17/2015 | 07:54am CEST

By Joseph Adinolfi, MarketWatch

Treasury yields plummeted Wednesday after Federal Reserve policy makers signaled that, while an interest-rate increase this year remains likely, the pace of rate hikes would be slower than the market expected.

In a new conference after the meeting, Federal Reserve Chairwoman Janet Yellen acknowledged that the economy has improved markedly since the first quarter, citing improvements in household spending and consumer sentiment.

But the central bank will likely keep rates low even after employment and inflation have returned to what the Fed would consider "normal" levels, she said.

Yellen added that the Fed will remain data dependent, and that rate hikes won't be "mechanical."

The yield on the 10-year note was up just 0.6 basis points on the day to 2.320%, down from a session high of 2.394%. The yield on the two-year note was down 3.7 basis points to 0.653%, according to Tradeweb, down from a high of 0.738%.

The three-year Treasury was the outperformer on the curve. It's yield was down 5.5 basis points to $1.027%.

Guy LeBas, chief fixed income strategist at Janney Capital Markets, noted that the policy statement's language regarding interest-rate guidance was unchanged, and that policy makers didn't acknowledge a recent improvement in core CPI.

He said it was "puzzling" that policy makers didn't become "reasonably confident" that inflation is heading back toward the Fed's preferred 2% mark -- and that this seemed to contradict the Fed's dot plot, an illustration of policy makers' rate-hike projections, which implied that two rate hikes are likely in 2015.

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
10/17 UNITED STATES ATTORNEY OFFICE FOR NORTHERN D : Painesville man indicted for having 109 grams of fentanyl
10/17 OFFICE OF UNITED STATES TRADE REPRESENTATIVE : Closing Statement of USTR Robert Lighthizer at the Fourth Round of NAFTA Renegotiations
10/17 OFFICE OF GOVERNOR OF STATE OF NEW YOR : Norsk Titanium to Produce Aerospace Components in Plattsburgh
10/17 CITY OF MILLBRAE CA : Millbrae Lions Marinated Crab Feed - Saturday, October 21
10/17DJUtilities Higher on Earnings Optimism -- Utilities Roundup
10/17DJEnergy Flat as Oil Rally Continues -- Energy Roundup
10/17 RENEWABLE INDUSTRIES CANADA : RICanada Celebrates the Success of the 2017 Renewable Industries Forum
10/17 NRDC PRESIDENT : Senate Should Reject Four “Wildly Unfit” Trump Environmental Picks
10/17DJMaterials Lower as Dollar Strengthens -- Materials Roundup
Latest news "Economy & Forex"