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 CET

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"
12:50p HMT UK HER MAJESTY TREASURY : Economic talks herald Golden Era in UK-China relations
12:15p NOC NATIONAL OIL : Arabian Gulf Oil ...General Tender No. (MTC-36/2017)
11:20a PRESIDENCY OF PEOPLE REPUBLIC OF CHINA : 2017/12/16 China, UK to deepen economic ties
10:55a China, UK vow to bolster economic cooperation, speed up stock connect plan
10:55a INDUSTRIALL GLOBAL UNION : ArcelorMittal Temirtau coal miners raised to surface
10:33a Britain looking at distinct trade deal with EU - Hammond
10:04a BENOÎT CŒURÉ : Central banks as risk managers
09:35a MINISTRY OF FINANCE OF REPUBLIC OF INDIA : The 24th GST Council Meeting held today through video conferencing decides that Inter-State e-way Bill to be made compulsory from 1st of February, 2018;
08:48aDJH&M Takes Hit From Weak Sales -- WSJ
08:48aDJWHAT'S NEWS : Business & Finance -- WSJ
Latest news "Economy & Forex"