Economics
Stock, Bond Rally Fizzles as Fischer Remarks Bolster Rate Wagers
- Yellen’s speech consistent with possible Sept. hike: Fischer
- Two-year Treasury yields at highest since June; dollar gains
Yellen: Case to Raise U.S Rates Is Getting Stronger
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The stock market optimism with Janet Yellen’s bullish comments on the U.S. economy fizzled after Federal Reserve Vice Chairman Stanley Fischer said an interest-rate increase is possible in September. Bonds tumbled, while the dollar gained.
Both global and American equities extended their weekly losses, while the yields on two-year Treasuries climbed to the highest since June as traders increased their bets on a Fed hike. The difference in yield between U.S. notes due in five years and those maturing in three decades tumbled to the least since March 2015. The dollar rose against most of its major peers. Oil trimmed its decline for the week.