mercredi 18 mars 2015
Treasuries Rally as Fed Lowers Outlook for Interest-Rate Rise
Posted on 13:22 by nice news
Treasuries rallied, sending benchmark 10-year yields below 2 percent, after the Federal Reserve lowered its estimates for interest rates and economic growth.
The central bank said it will need to see more gains in the jobs market and gain confidence that inflation is rising, even as it dropped its pledge to be “patient” in is its approach to a less-stimulative monetary policy. Fed Chair Janet Yellen, during a news conference in Washington, didn’t rule out a June interest-rate increase.
“This is a very positive statement for the bond market because it says the Fed will move extremely slowly if and when it does begin to raise rates,” said Gary Pollack, who manages $12 billion as head of fixed-income trading at Deutsche Bank AG’s Private Wealth Management unit in New York. “The Fed will not be raising rates until the Fed feels confident” that inflation is approaching its 2 percent target, he said.
The yield on the benchmark 10-year note fell eight basis points, or 0.08 percentage points, to 1.97 percent as of 2:25 p.m. in New York, according to Bloomberg Bond Trader data. The yield reached the lowest level since Feb. 26
“It’s pricing in a less-active Fed,” said Richard Schlanger, a money manager at Pioneer Investments in Boston, which
The central bank said it will need to see more gains in the jobs market and gain confidence that inflation is rising, even as it dropped its pledge to be “patient” in is its approach to a less-stimulative monetary policy. Fed Chair Janet Yellen, during a news conference in Washington, didn’t rule out a June interest-rate increase.
“This is a very positive statement for the bond market because it says the Fed will move extremely slowly if and when it does begin to raise rates,” said Gary Pollack, who manages $12 billion as head of fixed-income trading at Deutsche Bank AG’s Private Wealth Management unit in New York. “The Fed will not be raising rates until the Fed feels confident” that inflation is approaching its 2 percent target, he said.
The yield on the benchmark 10-year note fell eight basis points, or 0.08 percentage points, to 1.97 percent as of 2:25 p.m. in New York, according to Bloomberg Bond Trader data. The yield reached the lowest level since Feb. 26
“It’s pricing in a less-active Fed,” said Richard Schlanger, a money manager at Pioneer Investments in Boston, which
Treasuries Rally as Fed Lowers Outlook for Interest-Rate Rise
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