Treasuries Rise Before Fed Minutes, Yield Falls From 2-Year High Treasuries rose for the first time in four days before the Federal Reserve publishes minutes of its July meeting tomorrow amid speculation the central bank will provide guidance on when it plans to slow its stimulus. Ten-year yields dropped from the highest level in more than two years after a technical indicator suggested a reversal was imminent. Yields have jumped almost 25 basis points this month on speculation the economy is strong enough to prompt the U.S. central bank to slow its debt-purchase program as soon as its next meeting. The Fed’s first step may be tapering monthly debt purchases in September by $10 billion to a $75 billion pace, according to a Bloomberg survey concluded last week. “We’re now waiting for the Fed minutes for clues as to what is standing in the way of tapering,” said Philip Marey, a senior market economist at Rabobank Groep in Utrecht, the Netherlands. “There’s a little step back in yields. It’s certainly not a done deal that tapering will start in September.” The U.S. 10-year yield fell seven basis points, or 0.07 percentage point, to 2.81 percent at 8:43 a.m. London time, according to Bloomberg Bond Trader prices. The 2.5 percent note due in August 2023 rose 5/8, or $6.25 per $1,000 face amount, to 97 11/32. The yield climbed to 2.90 percent yesterday, the highest level since July 2011. Volatility as measured by the Merrill Lynch Option Volatility Estimate MOVE Index climbed to 99.48 yesterday, the highest level since July 9. The average for 2013 is 68.15. bloomberg/news/2013-08-20/treasuries-rise-after-10-year-yield-climbed-to-two-year-high.html
Posted on: Tue, 20 Aug 2013 07:59:06 +0000
Trending Topics
Recently Viewed Topics
© 2015