Treasury yields jump, stocks dip after Fed statement

Saturday, 23 Sep, 2017

In line with expectations the Fed said it would begin in October to cut its roughly $4.2 trillion in U.S. Treasury bonds and mortgage-backed securities holdings by initially cutting up to $10 billion each month from the amount of maturing securities it reinvests.

Still, the Fed said in a statement that prices for gasoline and other items might temporarily spike because of the damage caused by Hurricanes Harvey, Irma and Maria.

However, Speizer said the main focus was on the Fed's interest rate decision, due at 1800 GMT on Wednesday, with no rate change the widely expected.

They also have lowered their long-run forecast for the benchmark interest rate the Fed controls to 2.8 percent, down from 3 percent in a previous forecast in June.

The Standard & Poor's 500 index rose 2 points, or 0.1 percent, to 2,506 as of 1:31 p.m. The bond-market selloff that pushed intermediate and long-term Treasury yields up from 2017 lows reached September 8 is on the brink of making five-year notes a buy, according to technical analysis by Aaron Kohli at BMO Capital Markets.

Click to Enlarge The short-term Treasury bond market is behaving as we would expect in this environment, pushing up to levels not seen since 2008 in anticipation of tighter monetary conditions and higher inflation - which is the outlook the Fed maintains. The only other potential choice for Fed chair Trump has mentioned is Gary Cohn, a former Goldman Sachs executive who leads the president's National Economic Council.

By Wednesday, most Asian stocks showed mixed sentiments as the Federal Reserve's next announcement comes to a close.

The Federal Reserve on Wednesday maintained its benchmark interest rate at a range of 1% to 1.25%. Johnson Controls rose 3 percent and American Airlines rose 2.3 percent.

The credit report company disclosed earlier this month that it had discovered a giant cybersecurity breach on July 29, compromising the personal information of as many as 143 million Americans - almost half the country.

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I'm a supporter and a stark supporter of women like Brooke who have shared the airwaves before", Reed said. She writes , "I've been a journalist for 17 years - the past seven spent at CNN hosting a live show".


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Global stocks, dollar rise as investors turn eyes to Fed
At their last meeting in July, Fed officials unanimously made a decision to keep the Fed's key benchmark interest rate unchanged. US crude futures were down 1 cent at $49.90 per barrel, within sight of Thursday's almost four-month high of $50.50.


"The market could throw a little bit of a fit if they push (balance sheet reduction) back". It also indicated that one more rate increase by the end of the year remains possible.

The dollar index against a basket of six major currencies was effectively flat at 92.169 after slipping about 0.4 percent overnight.

Spreadbetters expected Britain's FTSE .FTSE to start unchanged and Germany's DAX .GDAXI and France's CAC .FCHI to each open down about 0.1 percent.

Currently, inflation is signalling that the Fed should not increase the cost of borrowing.

US stock indexes were mostly higher in midday trading ahead of the Federal Reserve's latest economic and interest rate policy update.

She also said if prices rose too quickly the bank would be able to lift rates quicker.

The iPhone maker's shares fell 2.5 percent and was the biggest drag on all three indexes after reports that the company admitted to connectivity issues with its latest smartwatch.

The dollar surged in NY to 112.15 yen from 111.50 yen earlier in Asia.