“A readjustment of positions is taking place and the market mood is a bit more cautious”said Ellis Phifer, managing director of fixed income research at Raymond James in Memphis.
the symposium of jackson hole, Wyoming, is the this week’s main event. The president of the fed, Jerome Powellis scheduled to speak on Friday and investors expect that strike a tone in favor of tightening monetary policy. The central bank will meet again in September and the market expects it to raise rates by 50 or 75 basis points.
“I think Powell is going to hold the line, he is going to say: ‘we are going to continue working and we are going to depend on the data’” Phifer said. “It’s also going to say that at some point, the Fed is going to decide on smaller hikes. I don’t think it’s going to deviate from the schedule at all.”
New orders for US-made capital goods rose in Julybut momentum has slowed from previous months, suggesting business equipment spending may struggle to rebound after contracting last quarter.
Late in the morning in New York, the Treasury bond yield at 10 years it rose 5 basis points to 3.1%. The return on 30-year paper gained 4.4 basis points to 3.3%.
The portion of the yield curve that measures the difference between two-year and 10-year bond yields, seen as an indicator of economic expectations, remained inverted at -25.8 basis points. This part of the curve, which usually predicts a recession, has been inverted for almost two months.
The return of the two-year Treasury debt rose 2.5 basis points per 3.4%.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
