![]() The Labor Department’s jobs report for May showed employment growth of just 75,000, well below estimates. he can do whatever he wants.” But market expectations for lower rates have increased recently after the release of weakening economic data. “Don’t forget: the head of the Fed in China is President Xi. ” Meanwhile, China keeps devaluing its currency, Trump added. Trump called the Fed “the only problem our economy has” in a tweet, noting they “don’t have a feel for the Market.” Trump also told CNBC’s Joe Kernen on Monday that the Fed “made a big mistake: They raised interest rates far too fast. In December, after the central bank raised rates for the last time last year, Trump eviscerated the Fed. Trump has repeatedly gone after the Fed for what he considers to be tight monetary policy. has low inflation, calling it “a beautiful thing.” The dollar fell slightly against the euro following Trump’s tweets, but remained little changed. at a big disadvantage,” Trump tweeted, adding the Fed doesn’t have “a clue.” Trump also said in a separate tweet the U.S. “The Euro and other currencies are devalued against the dollar, putting the U.S. is at a disadvantage compared to other major currencies like the euro as other central banks keep interest rates low while the Federal Reserve’s rates are higher by comparison. Trump says ‘devalued’ currencies put US at a disadvantage and the Fed doesn’t have a ‘clue’ - President Donald Trump said Tuesday the U.S. According to a Bloomberg Barclays index, Treasuries maturing in a decade or more have returned 9% in 2019 - showing some of the vigor seen during the 25% surge in 2014, the last full year the Fed pinned rates near zero. Moribund price pressures are at the crux of this year’s unexpected boom trade in global bonds, and especially in the long-dated assets most vulnerable to having their profitability eroded over time. is also due to sell $24 billion of 10-year securities. Portugal and Germany both sold benchmark debt at record-low yields in auctions Wednesday, while the U.S. Yields in the latter touched an all-time low this month. Across Europe, countries are rushing to the market to take advantage of the low-yield environment, with Italy and Spain expected to issue bonds via syndication. Pricing in futures markets shows expectations for more than 50 basis points of Fed cuts by the end of this year. The two-year yield slid to 1.77% last week, the lowest since December 2017. The pressure is showing particularly in the U.S., where yields on two- and 10-year Treasuries have sunk more than a percentage point from highs reached in late 2018. The moves are underpinned by conviction that another global easing cycle is on its way. In Europe, there’s concern that inflation expectations are becoming unmoored, and Bank of Japan Governor Haruhiko Kuroda has asserted more stimulus is possible if inflation loses momentum. ![]() ![]() His peers in Europe and Japan have taken defensive stances lately, as data show inflation is failing to pick up as hoped. Rallies in long-dated bonds have pushed yields to multi-year lows Fed Chairman Jerome Powell has a chance for rebuttal when he delivers the central bank’s next rate decision on June 19. Markets “seem to be almost taunting the Fed here,” he said. ![]() “It’s almost a new form of bond market vigilante-ism,” Michael Purves, chief global strategist at Weeden & Co., told Bloomberg Television on Tuesday. That’s despite repeated assurance from Federal Reserve policy makers that they will be “patient” in making their next move. president, according to a Bloomberg Barclays index of securities issued by major economies including the U.S., Germany and U.K. For example, the aggregate rate on longer-maturity sovereign debt ended last week at 1.18%, a level last seen two weeks before Donald Trump was elected U.S. Just look at the size and scope of the recent rally, which has dragged down yields across the curve. Bond Markets Are ‘Almost Taunting the Fed’ With Global Rate-Cut Bets - Bond markets around the globe are acting like central-bank rate cuts are only a rubber-stamp away from becoming a reality.
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