Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Treasuries Advance on Fed's Gloomy Outlook


Prices at the long-end of the Treasury curve were bulled up by the combination of a $1.75 billion bond buyback and another downcast glimpse into Fed thinking on the economy via the June FOMC minutes.

On the data front, jobless claims reverted to their higher trend at +393,000 after all the auto re-tooling of the past couple months, with continuing claims rising to the highest level since September 1992.

The September bond bumped along below 105-11 Aug-17 highs, with modest profit-taking after the buyback. But the dour FOMC minutes sent stocks into retreat, boosted the contract to 105-18 five-month highs and sent the two-year note and 30-year note curve back below +170 basis points, compared to wides above +180 basis points right after the FOMC.

The front-end lagged after the minutes revealed St. Louis Fed's Poole dissenting from the both cut and the weaker bias, while "a number of members" believed the Fed to be near the end of its cycle. Overall the report suggested the Fed was still grappling with an evolving slowdown. Dallas Fed's McTeer fretted about the "fringes of the labor force," and manufacturers pressed for a weaker dollar again.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus