BOND REPORT: 10-year Treasury Note Yield Pulls Back From 4-year High
February 22 2018 - 6:07AM
Dow Jones News
By Victor Reklaitis, MarketWatch
Investors remain focused on Fed minutes
Treasury yields dipped early Thursday, giving back some of the
prior day's advance that came after Federal Reserve minutes
signaled more interest-rate hikes in the offing.
See:Fed minutes say stronger outlook increases the chance for
more rate hikes
(http://www.marketwatch.com/story/fed-minutes-stronger-outlook-increases-the-chance-of-more-rate-hikes-2018-02-21)
What are key benchmarks doing?
The yield on the 10-year Treasury note was down 2.7 basis points
to 2.924%, after notching a fresh four-year high above 2.94% on
Wednesday
(http://www.marketwatch.com/story/2-year-treasury-yields-extend-climb-ahead-of-fed-meeting-minutes-2018-02-21).
The two-year note yield dipped by less than 1 basis point to
2.262%, while the rate for the 30-year bond edged lower by 1.8
basis pints to 3.205%.
Bond prices and yields move in the opposite direction.
What are strategists saying?
"The bond market quickly grabbed onto the fact that the Fed
could tighten monetary policy faster than previously anticipated,"
said Fiona Cincotta, senior market analyst at City Index, in a note
about the reaction to the minutes from the U.S. central bank's
January meeting.
"Bond yields shot to a fresh 4-year high of 2.94% sending
jitters through the stocks markets, which saw the Dow reverse," she
added.
What data and Fed speakers are in focus?
Investors may pay close attention to Fed officials scheduled to
speak Thursday, including New York Fed President William Dudley,
due to make remarks at 10 a.m. Eastern Time, and Atlanta Fed
President Raphael Bostic, on deck at 12:10 p.m. Eastern.
Earlier on Thursday, Fed Vice Chairman Randal Quarles said in
Tokyo that recent low inflation readings are not "a great concern,"
while the economy is "performing very well."
(http://www.marketwatch.com/story/feds-quarles-says-low-us-inflation-readings-are-not-a-great-concern-2018-02-22)
A report on weekly jobless claims is slated to arrive at 8:30
a.m. Eastern, with economists polled by MarketWatch expecting
230,000 claims, then a January reading on leading economic
indicators is due to hit at 10 a.m. Eastern.
(END) Dow Jones Newswires
February 22, 2018 05:52 ET (10:52 GMT)
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