Treasurys Pull Back After Recent Gains
August 22 2017 - 4:13PM
Dow Jones News
By Sam Goldfarb
U.S. government bonds pulled back Tuesday as global investors
showed less appetite for safer assets following a recent bout of
caution.
In recent trading, the yield on the benchmark 10-year Treasury
note settled at 2.215%, according to Tradeweb, compared with 2.182%
Monday.
Yields, which rise when bond prices fall, ticked higher
overnight as stocks in Europe gained after three consecutive
sessions of declines.
Yields, which rise when bond prices fall, ticked higher
overnight as stocks in Europe gained after three consecutive
sessions of declines.
Factors that have weighed on stocks and bolstered bonds include
some disappointing corporate earnings, terrorist attacks in Spain,
and creeping concerns about Congress's ability to meet upcoming
deadlines to pass spending legislation and raise the debt ceiling,
analysts said.
Still, there has been little sign of panic among investors, and
Tuesday's moves represented a "reversal of the risk-off trade that
happened in the previous few sessions," said Kevin Giddis, head of
fixed-income capital markets at Raymond James.
After a long stretch of low volatility, some analysts have
pointed to this Friday as an important moment for the bond market,
as the Federal Reserve's Jackson Hole conference gets under way
with speeches from both Fed Chairwoman Janet Yellen and European
Central Bank President Mario Draghi.
With investors skeptical that the Fed will raise interest rates
again this year following a run of soft inflation data, there is a
risk they could be surprised if Ms. Yellen argues in favor of
tighter monetary policy, analysts say.
Similarly, any hint by Mr. Draghi that the ECB could start
trimming asset purchases meant to stimulate the eurozone economy
could also cause investors to sell government debt.
Write to Sam Goldfarb at sam.goldfarb@wsj.com
(END) Dow Jones Newswires
August 22, 2017 15:58 ET (19:58 GMT)
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