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Fed tiptoes towards the taper stage months before the curtain call
  + stars: | 2021-06-14 | by ( Ann Saphir | ) www.reuters.com + 0.00   time to read: +6 min
“I think it will start very, very cautiously,” he added, and Fed Chair Jerome Powell won’t be in any rush to conclude it. The risk of another “taper tantrum” - the market ruckus that erupted eight years ago when Fed policymakers first broached the notion of scaling back their bond-buying after the 2007-2008 financial crisis - appears remote this time. DIFFERENT ECONOMY, DIFFERENT FRAMEWORKCompared with the last time the Fed was contemplating reducing its bond purchases, the U.S. economy is arguably in better shape. But the Fed still seems less eager to ease up on the monetary policy gas pedal than it was eight years ago. In 2013, Fed policymakers aimed to complete the taper by the time unemployment had dropped to 7%.
Persons: Robin Brooks, , , Jerome Powell won’t, Powell, Alejandra Grindal, Ned Davis, Gregory Daco, Daco Organizations: Federal Reserve, Institute of International Finance, Fed, Ned, Ned Davis Research, Oxford Economics, Reuters, Wall Street Locations: Treasuries, U.S, York
S&P 500 futures meanwhile nudged 0.1% higher, with investors apparently viewing Thursday’s above-forecast U.S. inflation data and surging factory prices in China as temporary or manageable. Goldman Sachs economists said concerns that rising inflation will derail the market recovery or lead to sharply higher bond yields were probably misplaced. Speculators’ net long positions in U.S. bond futures hit the highest level since October 2017, U.S. financial watchdog data showed. Many investors expect the Fed to repeat its dovish view at its two-day meeting from Tuesday. Bitcoin held on to weekend gains, when Elon Musk flagged Tesla’s possible resumption of transactions using the token.
Persons: Goldman Sachs, ” John Woolfitt, Treasuries, , Akira Takei, Bitcoin Organizations: U.S . Federal, Atlantic Capital, Asset Management, Nikkei, European Central Bank, Elon Musk Locations: TOKYO, U.S, COVID, China, London, , Asia, Hong Kong, Australia, Pacific, Japan, Xinjiang
World stocks near record high as investors await dovish Fed act
  + stars: | 2021-06-14 | by ( Hideyuki Sano | ) www.reuters.com + 0.00   time to read: +4 min
REUTERS/Kim Kyung-HoonGlobal shares held firm near record highs on Monday while U.S. bond yields flirted with three-month lows as investors expect the Federal Reserve to stick to its dovish mantra later this week. The MSCI all-country world equity index (.MIWD00000PUS), the U.S. S&P 500 (.SPX) and the pan-regional STOXX Europe 600 index (.STOXX) all closed at record highs on Friday. Many investors expect the Fed to repeat its dovish view at its two-day meeting from Tuesday. "There will probably be no surprise from the Fed this week," said Mitsubishi UFJ's Fujito. U.S. West Texas Intermediate (WTI) crude futures added 0.2% to $71.05 per barrel, near their highest since October 2018.
Persons: Kim Kyung, Norihiro Fujito, Mitsubishi UFJ, Mitsubishi UFJ Morgan Stanley, Treasuries, Akira Takei, Boris Johnson's, Johnson Organizations: Nikkei, REUTERS, Hoon Global, Federal Reserve, Japan's Nikkei, U.S . Federal Reserve, Mitsubishi, Mitsubishi UFJ Morgan, Mitsubishi UFJ Morgan Stanley Securities, Asset Management, European Central Bank, British, Brent, . West Texas, Thomson Locations: Tokyo, Japan, Asia, Pacific, China, Hong Kong, Australia, U.S, Europe, India
Stocks wait at record peaks for Fed; oil marches higher
  + stars: | 2021-06-14 | by ( Hideyuki Sano | ) www.reuters.com + 0.00   time to read: +4 min
Japan's Nikkei (.N225) rose 0.7% while MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.2%. The MSCI world equity index (.MIWD00000PUS), the U.S. S&P 500 (.SPX) and the pan-regional STOXX Europe 600 index (.STOXX) all closed at record highs on Friday. "Yes, PPIs are racing higher, but will that be reflected in higher consumer goods prices from China? Certainly, that's what the U.S. bond market is saying to us." Speculators are also building up long positions in U.S. debt, with their net long positions in U.S. bond futures hitting the highest level since October 2017 , U.S. financial watchdog data showed.
Persons: Athit, Jeffrey Halley, Treasuries, Akira Takei, Norihiro Fujito, Mitsubishi UFJ, Mitsubishi UFJ Morgan Stanley, Boris Johnson's, Johnson, Bitcoin Organizations: REUTERS, Federal Reserve, Japan's Nikkei, U.S . Federal Reserve, Oil, Asset Management, Mitsubishi, Mitsubishi UFJ Morgan, Mitsubishi UFJ Morgan Stanley Securities, European Central Bank, British, Brent, Elon Musk, Thomson Locations: Tokyo, Japan, Asia, Pacific, China, Hong Kong, Australia, U.S, Europe
REUTERS/Kim Kyung-HoonWorld stocks climbed another peak on Monday, while U.S. bond yields were near three-month lows as worries of rising inflation abated and investors anticipated the U.S. Federal Reserve sticking to its dovish course this week. S&P 500 futures meanwhile nudged 0.1% higher, with investors apparently viewing Thursday's above-forecast U.S. inflation data and surging factory prices in China as temporary or manageable. Goldman Sachs economists said concerns that rising inflation will derail the market recovery or lead to sharply higher bond yields were probably misplaced. Speculators' net long positions in U.S. bond futures hit the highest level since October 2017 , U.S. financial watchdog data showed. Many investors expect the Fed to repeat its dovish view at its two-day meeting from Tuesday.
Persons: Kim Kyung, Goldman Sachs, John Woolfitt, Treasuries, Akira Takei, Bitcoin Organizations: Nikkei, REUTERS, U.S . Federal, Atlantic Capital, Asset Management, Japan's Nikkei, European Central Bank, Elon Musk, Thomson Locations: Tokyo, Japan, U.S, COVID, China, London, Asia, Hong Kong, Australia, Pacific, Xinjiang
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 11, 2021. REUTERS/StaffWorld stocks climbed another peak on Monday, while U.S. bond yields were near three-month lows as worries of rising inflation abated and investors anticipated the U.S. Federal Reserve sticking to its dovish course this week. S&P 500 futures meanwhile nudged 0.1% higher, with investors apparently viewing Thursday's above-forecast U.S. inflation data and surging factory prices in China as temporary or manageable. Goldman Sachs economists said concerns that rising inflation will derail the market recovery or lead to sharply higher bond yields were probably misplaced. Many investors expect the Fed to repeat its dovish view at its two-day meeting from Tuesday.
Persons: Goldman Sachs, John Woolfitt, Treasuries, Akira Takei, Paul Donovan, Brexit, Donovan, Bitcoin Organizations: REUTERS, Staff, U.S . Federal, Atlantic Capital, Asset Management, UBS Global Wealth Management, Markets, Japan's Nikkei, European Central Bank, Elon Musk, Thomson Locations: Frankfurt, Germany, U.S, COVID, China, London, Asia, Hong Kong, Australia, Pacific, Japan, Xinjiang
That would represent a 12.5% cut in Treasury purchases but a 25% reduction in MBS purchases. More recently, though, some Fed policymakers have questioned the need to keep up with the MBS purchases, in particular, given the different role they have played in this crisis. And Kaplan, for one, has said he believes the Fed’s MBS purchases may be having the unintended side effect of fueling excesses. “Tapering faster with MBS is a way of leaning a little bit against what might be seen as risks in the housing market. By contrast, the Fed’s footprint in the Treasury market, at around 25%, is larger than during its previous asset purchase program.
Persons: Eric S, Rosengren, Keith Bedford, Fannie Mae, Freddie Mac, Ginnie Mae, Robert Kaplan, Eric Rosengren, Kaplan, Bill English, Organizations: Reuters, Federal, Federal Reserve Bank, Boston's, REUTERS, Fed, MBS, Treasury, Dallas Fed, Boston Fed, Yale School of Management, Deutsche Bank, Treasuries Locations: New York, Treasuries
The 10-year yield, which falls when prices rise, was down about a basis point at 1.4502% on Friday after touching as low as 1.428% earlier in the session, its lowest since early March. At that point, the yield had fallen roughly 13 basis points for the week so far, the steepest weekly drop since last June. "Traders have been holding on to old, stale positions and the market needs news to endorse those positions. Short positions in Treasuries had hit their highest since 2018, according to JP Morgan positioning data last week. The gap between 5-year notes and 30-year bonds was at 142 basis points, less than a basis point higher than Thursday's close.
Persons: Ross Kerber, Tom Westbrook, Priya Misra, Imre Speizer, Ana Nicolaci da Costa, Nick Zieminski Organizations: Treasury, Traders, Securities, Global, Westpac, Morgan Locations: 1yr, Tom Westbrook BOSTON, SINGAPORE, New Zealand, Treasuries, New York, Boston, Singapore
“They won’t trade and they won’t be liquid.”As it stands, recovery fund borrowing will end in 2026. Some had hoped the recovery fund debt would form the basis of an issuance programme to eventually create a risk-free asset which, alongside Bunds, would eventually rival Treasuries. BLUEPRINTEU Commission Vice President Valdis Dombrovskis did recently hint that a successful recovery fund offered scope to develop a permanent instrument. A more immediate risk is lower-than-anticipated issuance volumes, with banks predicting as little as around 600 billion euros -- 25% below the top amount. Graphic: EU recovery fund debt forecasts:INTEGRATIONAnd old existential risks remain -- without a fiscal union with common budget and tax-raising policies, the EU will remain a supranational, rather than sovereign borrower.
Persons: Yves Herman, Alexander Hamilton, Chris Iggo, , Iggo, Johannes Hahn, Bunds, Treasuries, Valdis Dombrovskis, permanency, Nicola Mai, ” Mai, Mike Riddell Organizations: Reuters, European Union, EU, REUTERS, U.S, Treasury, European Commission, AXA Investment, Treasuries, Green Party, Rabobank, Allianz Global Investors Locations: Brussels, Belgium, Europe, United States, Italy, PIMCO, Germany, “ Germany
As it stands, recovery fund borrowing will end in 2026. Some had hoped the recovery fund debt would form the basis of an issuance programme to eventually create a risk-free asset which, alongside Bunds, would eventually rival Treasuries. BLUEPRINTEU Commission Vice President Valdis Dombrovskis did recently hint that a successful recovery fund offered scope to develop a permanent instrument. A more immediate risk is lower-than-anticipated issuance volumes, with banks predicting as little as around600 billion euros -- 25% below the top amount. Until then, investors will demand a premium over Germany's Bunds to compensate for the slightest risk of a euro break-up, further hampering EU bonds' safe asset potential.
Persons: Yves Herman, Alexander Hamilton, Chris Iggo, Iggo, Johannes Hahn, Bunds, Treasuries, Valdis Dombrovskis, permanency, Nicola Mai, Mai, Mike Riddell, Organizations: EU, REUTERS, European Union, U.S, Treasury, European Commission, AXA Investment, Treasuries, Green Party, Rabobank, Allianz Global Investors, Thomson Locations: Brussels, Belgium, Europe, United States, Italy, PIMCO, Germany, “ Germany
Australia, NZ dlrs broadly steady as action shifts to bonds
  + stars: | 2021-06-11 | by ( Swati Pandey | ) www.reuters.com + 0.00   time to read: +3 min
The Aussie was dozing at $0.7747, having spent the entire week in a tight range of $0.7719/$0.7765. “On a 100-day basis, all major drivers of the cross have failed to spark a move,” ANZ analysts wrote in a note. Investor activity has shifted to bonds instead, with yields on Australian 10-year government papers down 22 basis points this week, the biggest fall since March 2020. New Zealand government bonds rose, sending yields about 5 basis points lower at the long-end of the curve while yields on 10-year government paper were at their lowest since end-April. Short positions in Treasuries were the highest since 2018, according to JP Morgan positioning data last week.
Persons: , , Rodrigo Catril, Philip Lowe, Swati Pandey, Wayne Cole, Ana Nicolaci da Organizations: SYDNEY, New, New Zealand, ” ANZ, Morgan, Reserve Bank of Australia Locations: New Zealand, Treasuries, Ana Nicolaci da Costa
Dollar slips as currency traders see inflation spike as temporary
  + stars: | 2021-06-11 | by ( Reuters Staff | ) www.reuters.com + 0.00   time to read: +3 min
FILE PHOTO: U.S. one dollar banknotes are seen in front of displayed stock graph in this illustration taken February 8, 2021. Currency markets had been sluggish all week in anticipation of the data, but when it came in above expectations, there was little market reaction. The dollar index edged lower in the Asian session and at 0723 GMT, was down 0.1% on the day at 89.995. In Russia, the central bank is expected to raise its 5% interest rate by as much as 50 basis points - its third rate rise in a row. The central bank targets annual consumer inflation of 4%.
Persons: Dado Ruvic, Treasuries, , Bitcoin Organizations: REUTERS, Federal Reserve, CPI, UBS, European Central Bank, New Zealand, ECB, ING, ” ING, Fed, Seven Locations: Russia, Carbis
Dollar marooned as investors shrug off inflation spike
  + stars: | 2021-06-11 | by ( ) www.cnbc.com + 0.00   time to read: +3 min
The dollar bought 109.44 yen and was headed for a small weekly loss. It was also on track for modest weekly losses on the Aussie dollar and British pound, last trading at $0.7752 per Aussie and $1.41825 per pound. The U.S. dollar index fell slightly after the inflation figures were published and last sat at 89.974, down very slightly for the week. Benchmark 10-year U.S. Treasuries actually rallied to a three-month high in the wake of CPI, as short sellers quit bets on rising yields. Indonesia's rupiah gained about 0.4% to 14,187 per dollar as lower U.S. Treasury yields boosted the attraction of Indonesian bonds.
Persons: Chris Weston, we'd, Imre Speizer, Treasuries, Cryptocurrencies, bitcoin Organizations: U.S, European Central Bank, Pepperstone, Westpac, CPI, South Korean, Indonesia's, Treasury Locations: Asia, Melbourne, United States
TREASURIES-Traders rethink CPI message and send down yields
  + stars: | 2021-06-10 | by ( Ross Kerber | ) www.reuters.com + 0.00   time to read: +3 min
The benchmark 10-year yield was down 2.2 basis points at 1.4671% in afternoon trading, near its low for the session and the least since March. The trading moved down the part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations. It was at 131 basis points, about 2 basis points lower than Wednesday's close and also its lowest since March. The 10-year TIPS yield was at -0.889% and the breakeven inflation rate was at 2.348%. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down less than a basis point at 0.1508%.
Persons: Ross Kerber, Andy Richman, Richman, Ben Jeffery, Chizu Nomiyama Organizations: Treasury, U.S . Labor Department, U.S . Federal Reserve, Sterling Capital Management, U.S, BMO Capital Markets Locations: U.S, York, Boston
MSCI’s benchmark, the S&P 500 and a key European index surged to record highs after the U.S. Labor Department said the consumer price index in the 12 months ended in May accelerated 5.0%, the biggest year-on-year increase since August 2008. In a sign of market complacency, the 10-year U.S. Treasury note’s yield fell 1.2 basis points to 1.4772% after earlier rising above 1.5% following the data’s release. On Wall Street, the Dow Jones Industrial Average rose 0.35%, the S&P 500 gained 0.45% and the Nasdaq Composite added 0.49%. A surprisingly strong U.S. inflation print in April spooked investors, sparking a cautious run into Thursday’s of May data. Short positions in Treasuries were the highest since 2018, according to JP Morgan positioning data last week.
Persons: Subadra Rajappa, ” Rajappa, Joseph LaVorgna, ” LaVorgna, , , MSCI’s Organizations: U.S . Labor Department, Treasury, Societe Generale, Americas, Dow Jones, Nasdaq, European Central Bank, Morgan Locations: New York, Natixis, U.S, Treasuries
TREASURIES-Yields higher after consumer price data
  + stars: | 2021-06-10 | by ( Ross Kerber | ) www.reuters.com + 0.00   time to read: +3 min
The benchmark 10-year yield was up 2.7 basis points at 1.5161% in morning trading and had reached as high as 1.535%. The increase in the 10-year yield broke a pattern of declines in recent days but left the note still below its range of last week. The trading pushed up the part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations. It was at 136 basis points, about 2 basis points higher than Wednesday's close. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up less than a basis point at 0.1568%.
Persons: Ross Kerber, steepening, Subadra Rajappa, Chizu Nomiyama Organizations: Traders, Treasury, U.S . Labor Department, U.S . Federal Reserve, Societe Generale, U.S Locations: U.S, New York, Boston
Yet April’s surprisingly strong U.S. inflation print spooked some, leading to a cautious run into the May numbers later on Thursday in case of another upside surprise. Ahead of both key events, market sentiment remained subdued with MSCI’s broadest gauge of global stocks flat at 715.77 points, just off a record high of 718.19 hit last week. U.S. stock futures pointed to a mixed open on Wall Street, with the S&P called flat and Nasdaq down 0.3%. Ankit Gheedia, BNP Paribas’ head of equity and derivative strategy for Europe, said he expected inflation to pick up “sharply” in the coming months. So we think there will be higher inflation during summer,” although stock volatility would likely remain low in the coming days, absent a shock on inflation.
Persons: April’s, Ankit Gheedia, Kit Juckes Organizations: Global, eyeing, Federal Reserve, European Central Bank, Nasdaq, BNP, , Morgan, Treasury, U.S, CPI, Reuters, , Generale, Brent Locations: eyeing U.S, COVID, Europe, Asia, Pacific, Japan, U.S, Treasuries, United States
Asian shares hold range as investors eye U.S. CPI
  + stars: | 2021-06-10 | by ( Swati Pandey | ) www.reuters.com + 0.00   time to read: +3 min
SYDNEY (Reuters) - Asian shares edged higher but held their recent trading range on Thursday as investors focussed on U.S. inflation data and the risk of an upside surprise that could prompt the Federal Reserve to start tapering its massive stimulus. REUTERS/Kim Kyung-Hoon/File PhotoMSCI’s broadest index of Asia-Pacific shares outside Japan were marginally higher at 700.6 points, but stayed in the 698-712 points range it has traded in since late May. [.N]Markets are looking to the European Central Bank (ECB)policy meeting later in the day where it will likely keep its policy guidance unchanged and publish updated euro area macroeconomic projections. Brent crude futures fell 22 cents to 72 a barrel, while U.S. crude futures were 27 cents lower at $69.69 a barrel. The euro was a tad weaker at $1.2169 ahead of the ECB meeting while the British pound eased to $1.4100.
Persons: Kim Kyung, Dow, , coronavirus lockdowns Organizations: SYDNEY, Federal Reserve, REUTERS, Japan’s Nikkei, Morgan, Treasury, Nasdaq, European Central Bank, U.S, CPI, Reuters, ANZ, Brent, ECB, New Zealand Locations: Tokyo, Japan, Asia, Pacific, Treasuries, coronavirus
Asian shares in tight range ahead of U.S. CPI, ECB meeting
  + stars: | 2021-06-10 | by ( Swati Pandey | ) www.reuters.com + 0.00   time to read: +3 min
REUTERS/Kim Kyung-Hoon/File PhotoIn early European trades, the pan-region Euro Stoxx 50 futures added 0.52% and German DAX futures rose 0.1%, as did London’s FTSE futures. MSCI’s broadest index of Asia-Pacific shares outside Japan gained to 703.7 points, but stayed in the 698-712 points range it has traded in since late May. [.N]Markets are looking to the European Central Bank (ECB) policy meeting later in the day where it will likely keep its policy guidance unchanged and publish updated euro area macroeconomic projections. Brent crude futures fell 51 cents to 71.71 a barrel, while U.S. crude futures were 46 cents lower at $69.50 a barrel. The euro was a tad weaker at $1.2162 ahead of the ECB meeting while the British pound eased to $1.4105.
Persons: Kim Kyung, DAX, Dow, Organizations: SYDNEY, Federal Reserve, REUTERS, Japan, Japan’s Nikkei, Morgan, Treasury, Nasdaq, European Central Bank, U.S, CPI, Reuters, ANZ, Brent, ECB, New Zealand Locations: Tokyo, Japan, Asia, Pacific, U.S, Treasuries, United States
LONDON/SYDNEY (Reuters) - Global shares hovered near a record high and the dollar also held steady on Thursday, eyeing U.S. inflation data for any sign the Federal Reserve could start tapering its massive stimulus. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 9, 2021. Yet April’s surprisingly strong U.S. inflation print spooked some, leading to a cautious run in to the May numbers later on Thursday in case of another upside surprise. Ahead of the U.S. CPI data, analysts polled by Reuters said they expected a rise of 0.4% in May, taking the annual pace to 3.4%. Activity was muted in the currency market with the dollar flat against a basket of major currencies.
Persons: April’s, , That’s, , Jim Reid Organizations: Global, eyeing, Federal Reserve, REUTERS, Staff, Deutsche Bank, Morgan, Treasury, U.S, CPI, Reuters, ANZ, Brent Locations: SYDNEY, eyeing U.S, Frankfurt, Germany, COVID, Europe, Asia, Pacific, Japan, U.S, Treasuries, United States
Stocks rally, dollar stable after jump in U.S. CPI data
  + stars: | 2021-06-10 | by ( Herbert Lash | Simon Jessop | ) www.reuters.com + 0.00   time to read: +3 min
FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo/File PhotoMSCI’s all-country world index surged to a record intra-day high after the U.S. Labor Department earlier said the consumer price index in the 12 months through May accelerated 5.0%, the biggest year-on-year increase since August 2008. The benchmark 10-year U.S. Treasury yield rose 3.0 basis points to 1.5194% after the data’s release, while the dollar index was essentially flat, down 0.08%. A surprisingly strong U.S. inflation print in April spooked some investors, leading to a cautious run into the release on Thursday of the May data. Short positions in Treasuries were the highest since 2018, according to JP Morgan positioning data last week.
Persons: Toby Melville, Subadra Rajappa, ” Rajappa, Joseph LaVorgna, ” LaVorgna, , Organizations: London Stock Exchange Group, City of, REUTERS, U.S . Labor Department, Treasury, Societe Generale, Americas, Dow Jones, Nasdaq, Atlantic, European Central Bank, Morgan Locations: City, City of London, Britain, New York, Natixis, COVID, U.S, Treasuries
Dollar stuck near 5-month low as caution reigns ahead of U.S. CPI, ECB tests
  + stars: | 2021-06-10 | by ( ) www.cnbc.com + 0.00   time to read: +2 min
The dollar index has fluctuated narrowly around the psychologically important 90 level, and was last at 90.137. The euro rose to a one-week high at $1.2218 on Wednesday only to finish little changed, and was essentially flat at $1.2178 in Asia. The yen traded at 109.62 per dollar, also little changed from Wednesday and near the middle of the 109.19-110.325 range of the past two weeks. Deutsche Bank's Currency Volatility Index languished at its lowest level since February 2020. It last traded little changed at $37,097.02, after rebounding from a three-week low of $31,025 hit on Tuesday when signs of institutional investor caution and regulatory attention drove selling.
Persons: , Chris Weston, Bonds, bitcoin Organizations: European Central Bank, Investors, Deutsche, U.S, Labor, Reuters, CPI, ECB Locations: Asia, Treasuries, Melbourne
CME's micro Treasury futures offer simplicity with yield focus
  + stars: | 2021-06-09 | by ( Karen Brettell | ) www.reuters.com sentiment -0.99   time to read: +2 min
June 9 (Reuters) - The CME Group’s new micro Treasury futures will likely attract traders of stocks and other asset classes as the first contracts at the exchange that are based on yield moves in the most actively traded Treasuries, an exchange official said on Wednesday. The CME on Wednesday said it will launch new micro futures contracts based on two-year, five-year, 10-year and 30-year Treasuries in August, subject to regulatory approval. The micro contracts will be roughly one-tenth of the size of the CME’s existing Treasury futures contracts. Each basis point move in the underlying Treasury will be worth $10. The U.S. Treasury has been selling record amounts of debt to finance widening deficits and as it increases spending in an effort to stimulate the economy.
Persons: Treasuries, Sean Tully, , ” Tully Organizations: Treasury, Financial, OTC Products, CME, Federal Reserve, U.S . Treasury Locations: U.S
The yield on the 10-year note was down 3.4 basis points at 1.4941% in afternoon trading, after reaching as low as 1.472% earlier in the session. The move also pulled down a closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year notes, seen as an indicator of economic expectations. Strong CPI data a month ago helped push the yield on the 10-year to 1.707% in mid-May, but investors don't seem so concerned about inflation now. Helping drive the move lower in yields overnight was a big buyer of ultra-long Treasury futures around 4 a.m. The 10-year yield dipped from 1.52% to around 1.50% on the purchase, said Brenner.
Persons: Ross Kerber, Lou Brien, Raymond James, Ellis Phifer, Phifer, Joe Biden, Andrew Brenner, Brenner, Kate Duguid, Bernadette Baum, Emelia, Jonathan Oatis Organizations: Treasury, U.S, DRW, U.S . Bureau of Labor, Republican, NatAlliance Securities Locations: Washington, U.S, U.S . Federal, New York, Boston
GLOBAL MARKETS-Stocks hover near highs as bond yields dip
  + stars: | 2021-06-09 | by ( Herbert Lash | Tom Arnold | ) www.reuters.com + 0.00   time to read: +5 min
The yield on benchmark 10-year U.S. Treasury notes fell 3.2 basis points to 1.4958%, down from 1.528% late on Tuesday. Yields plunged as traders in part were forced to unwind short positions in Treasuries, said Joe LaVorgna, chief economist of the Americas at Natixis. MSCI’s all-country world index, a U.S.-centric benchmark for global equity markets, rose 0.01% to 717.04, down a little more than 1 point from a record peak on Tuesday. “I therefore see potential for a higher print to push real yields and shorter-dated yields higher, thus flattening the curve and boosting the dollar,” Athey said. The dollar held at the lower end of recent gains, with the U.S. dollar index down slightly at 90.031.
Persons: Joe, Sebastien Galy, Joe LaVorgna, , Biden, ” LaVorgna, MSCI’s, , Naokazu Koshimizu, James Athey, ” Athey Organizations: Democratic, Nordea Asset Management, Treasury, Dow Jones, Nasdaq, European Central Bank, Britain’s FTSE, Nikkei, Nomura Securities, Federal Reserve, Aberdeen Standard Investments, U.S, Deutsche, Brent Locations: U.S, Treasuries, Natixis, Europe, Asia, Pacific, Japan, China, Beijing
Total: 25