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  >  Economy & Forex  >  All News

News : Economy & Forex

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

BOND REPORT : Treasury Yields Struggle For Direction As Investors Monitor For Changes To Tax Bill

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/08/2017 | 04:18pm CET

By Sunny Oh

10-year Treasury yield heads back to 2.30%

Treasury yields held their ground on Wednesday as investors continued to assess progress on and prospects for tax-cut legislation working its way through Congress.

What are yields doing?

The 10-year Treasury note yield was relatively unchanged at 2.312%, up slightly from 2.309% on late Tuesday. The 2-year note yield edged higher to 1.633% from 1.629%. The 30-year bond yield was muted at 2.769%, versus 2.772%.

What's driving Treasurys?

Pushback against the tax proposal has been strong. Limitations on deductions for mortgage interest and state and local taxes are seen as among the most controversial.

Bondholders are worried tax cuts will widen the budget deficit and increase the amount of new issuance hitting the market next year, weighing on prices. Moreover, any inflationary impact could push the Federal Reserve to raise rates at a faster pace, a move that would prove bearish for U.S. government paper.

What did market participants say?

"The "Tax Cuts and Jobs Act"--TCJA--released by the leadership of the House Ways and Means Committee has been under attack, which is not surprising given that it includes numerous measures raising as well as lowering tax burdens, "wrote Jim O' Sullivan, chief U.S. economist for High Frequency Economics. "Congress will eventually pass a bill that lowers tax rates and includes at least modest fiscal stimulus in 2018. We expect some failed attempts along the way, however."

What else is on investors' radar?

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
08:16p Lawmakers Trade Blame Over Government Shutdown -- 3rd Update
06:44p MINISTRY OF FOREIGN AFFAIRS OF UNITED ARAB EMI : UAE, Italy hold 3rd Strategic Dialogue.
05:59p PRESIDENCY OF REPUBLIC OF SOUTH AFRICA : President Zuma to receive a courtesy call from President Kirr of South Sudan in Pretoria
05:56p Russian and Saudi energy ministers satisfied with oil market rebalancing - statement
05:24p CARICOM CARIBBEAN COMMUNITY : The Caribbean Community (CARICOM) embarks on the implementation of a harmonised Results-Based Management (RBM) System
05:14p MINISTRY OF AGRICULTURE & FARMERS WELFARE OF R : Milk production, which was around 17-22 million tonnes in the 1960s, increased to 165.4 million tonnes in 2016-17. Particularly, it increased by 20.12% during the year 2016-17 in comparison to 2013-14.
04:47p Turkey air strikes hit Syria's Afrin province in push to secure borders
04:34p MINISTRY OF DEFENSE OF RUSSIAN FEDERATION : Russia and Myanmar to implement large-scale bilateral military cooperation plan
04:34p MINISTRY OF DEFENSE OF RUSSIAN FEDERATION : Russia and Myanmar reach intergovernmental agreement on the simplified procedure for calls of warships to ports
03:55p Lawmakers Return to Capitol for Spending Talks -- 2nd Update
Latest news "Economy & Forex"
Advertisement