Pimco Sees No Fed Rate Move Until ’16 as Treasuries Extend Gains
- Two-year notes set for first three-week advance since February
- JPMorgan Asset Management still likes 7-10 year Treasuries
Most Important Two Minutes of the Fed News Conference
Treasuries advanced for a second day after the Federal Reserve kept interest rates near zero. Pacific Investment Management Co. says policy makers may wait until next year before raising them.
Ten-year notes built on Thursday’s gain after the Fed cited low inflation and the uncertain outlook for global growth in its policy statement as reasons to delay raising borrowing costs. Yields on two-year debt, which are more sensitive to Fed policy, were little changed after tumbling on Thursday by the most since March 2009, when the central bank said it would increase bond purchases to stimulate the economy. JPMorgan Asset Management said the Fed’s statement was good for bonds, and it still likes debt due between seven and 10 years.