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

U.S. Government Bonds Pull Back

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/19/2017 | 05:05pm CEST
By Sam Goldfarb 

U.S. government-bond prices fell Friday as investors digested new corporate bond supply and continued to recover from political headlines that had sparked a large rally earlier in the week.

In recent trading, the yield on the benchmark 10-year Treasury note was 2.259%, according to Tradeweb, compared with 2.233% Thursday. Yields rise when bond price fall.

Treasurys have rallied this week in response to a series of damaging reports related to President Donald Trump in the aftermath of his decision to fire FBI Director James Comey. Investors generally seek safer assets in times of political uncertainty. They are also increasingly concerned that Mr. Trump could have trouble pushing through policies such as tax cuts and infrastructure spending that had been expected to stimulate economic growth.

Bonds, though, began to pull back Thursday and took another leg down Friday, aided by a large bond sale from Qualcomm Inc. backing its purchase of NXP Semiconductor NV. Firms and banks underwriting corporate bond deals typically sell Treasury debt to hedge against unwanted interest-rate swings.

"If we can just stop the news out of Washington for a period there's room for an unwinding of the recent risk-off flows," said John Canavan, market analyst at Stone and McCarthy Research Associates in Princeton, N.J.

Among the fallouts of this week's political turbulence has been a decline in investors' expectations that the Federal Reserve will raise interest rates next month.

Fed-funds futures, used by investors to bet on the Fed's monetary policy outlook, recently showed 74% odds that the central bank would raise short-term interest rates by its June 13-14 meeting, according to CME Group. Those odds were up from 65% Wednesday but were down from a high of 88% last week.

Higher interest rates from the central bank reduce money supply in the broader economy and shrink the value of outstanding bonds.

Write to Sam Goldfarb at sam.goldfarb@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "All News"
02:34a USCG UNITED STATES COAST GUARD : Good Samaritan rescues 5 people adrift off the coast of Galveston
02:14a FCO UK FOREIGN AND COMMONWEALTH OFFICE : Foreign Secretary to hold trade and security talks in New Zealand
02:09a CBI CONFEDERATION OF BRITISH INDUSTRY : Inflation rises above Bank of England's 2% target
02:09a CBI CONFEDERATION OF BRITISH INDUSTRY : UK growth slows but firms are positive on near term outlook
02:09a CBI CONFEDERATION OF BRITISH INDUSTRY : 'Pivotal moment in country's history'
02:09a CBI CONFEDERATION OF BRITISH INDUSTRY : Optimism stabilises as financial services gets boost from solid economy – CBI/PwC
02:09a CBI CONFEDERATION OF BRITISH INDUSTRY : Clarity on future EU deal is the priority for Scottish firms
02:09a CBI CONFEDERATION OF BRITISH INDUSTRY : proposes new rules on President term of office
02:09a CBI CONFEDERATION OF BRITISH INDUSTRY : Our full reaction to the Budget
02:09a CBI CONFEDERATION OF BRITISH INDUSTRY : "Firms will welcome the funding announced for a new Midlands Engine Strategy"
Latest news "All News"
Advertisement