Portafogli e Strategie (investimento) Goodbye, Great Bond Bull Market?
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Titolo: DJ Treasury Bonds Hit as BOE Comments Fuel Rate-Increase Angst
Ora: 13/06/2014 15:43
Investors sold Treasury bonds Friday as worries over major central banks potentially raising interest rates sooner than expect trumped tensions in Iraq.
The bond market reversed Thursday's price rally that was driven by escalating violence in Iraq.
In recent trade, the benchmark 10-year Treasury note was 14/32 lower, yielding 2.635%, according to Tradeweb. Bond yields rise when their prices fall.
The selling was driven by comments from Bank of England Gov. Mark Carney late Thursday after investors and traders exited active trading in U.S. government bonds.
Mr. Carney said interest rates in the U.K. could rise sooner than investors expect, sending the clearest signal yet that Britain's central bank is inching closer to calling time on five years of record-low borrowing costs.
Traders said the comments raise concern among investors that the Federal Reserve could also bring forward its timing for interest rate hikes if the U.S. economy gains more momentum in coming months. The Fed's next policy meeting is next week.
Many investors have expected the BOE be the first major central bank to raise interest rates, probably in early 2015. The Fed is expected to follow suit later next year. Now investors are worried that a rate increase from the BOE could come as soon as this yearas the U.K. economy has shown signs of gathering momentum.
"Carney's comments to some are a reminder that central bankers are prone to changing their minds when the facts change, pushing up bond yields," said Tony Crescenzi, senior market strategist at Pacific Investment Management Co. in Newport Beach, Calif.
Government bonds in the U.K. tumbled Friday and the yield on the nation's 10-year sovereign debt rose to 2.772%.
Shorter-dated bonds led the selling as their yields are directly impacted by central banks' interest-rate policy. Both the yields on the two-year and five-year Treasury notes hit the highest level since early May. The five-year note's yield rose to 1.73% and the two-year note's yield increased to 0.467%.
Despite the selling, bond yields remain at very low levels. Major central banks have slashed interest rates to record lows following the 2008 financial crisis. The European Central Bank was the latest tocut rates last week.
Some analysts said the Fed wouldn't be in a rush to raise rates given the uneven pace of the economic growth while inflation remains contained. Friday, a report showed inflation at wholesale level unexpectedly fell by 0.2% last month.
The Fed has dialed back its monthly bond buying this year and economists widely expect the central bank next week to announce intentions to reduce it by another $10 billion to $35 billion. Fed Chairwoman Janet Yellen said last month the central bank may hold interest rates low for a considerable time to support the economy even as many investors expect the Fed to stop buying bonds by the end of this year.
The 10-year yield had tumbled from 3% at the start of this year, driven by uncertainty over whether the U.S. economy would accelerate after a harsh winter. The world's largest economy contracted by 1% in the first quarter, raising some concerns about whether it could post a 3% growth rate this year, which was forecast by many economists.
In recent days, the 10-year yield has risen after hitting an 11-month low of 2.4% in late May. A number of recent data have shown the economy gained momentum this quarter. Both the manufacturing and service industries have strengthened, as the economy added a bigger-than-forecast 217,000 nonfarm jobs in May.
Ora: 13/06/2014 15:43
Investors sold Treasury bonds Friday as worries over major central banks potentially raising interest rates sooner than expect trumped tensions in Iraq.
The bond market reversed Thursday's price rally that was driven by escalating violence in Iraq.
In recent trade, the benchmark 10-year Treasury note was 14/32 lower, yielding 2.635%, according to Tradeweb. Bond yields rise when their prices fall.
The selling was driven by comments from Bank of England Gov. Mark Carney late Thursday after investors and traders exited active trading in U.S. government bonds.
Mr. Carney said interest rates in the U.K. could rise sooner than investors expect, sending the clearest signal yet that Britain's central bank is inching closer to calling time on five years of record-low borrowing costs.
Traders said the comments raise concern among investors that the Federal Reserve could also bring forward its timing for interest rate hikes if the U.S. economy gains more momentum in coming months. The Fed's next policy meeting is next week.
Many investors have expected the BOE be the first major central bank to raise interest rates, probably in early 2015. The Fed is expected to follow suit later next year. Now investors are worried that a rate increase from the BOE could come as soon as this yearas the U.K. economy has shown signs of gathering momentum.
"Carney's comments to some are a reminder that central bankers are prone to changing their minds when the facts change, pushing up bond yields," said Tony Crescenzi, senior market strategist at Pacific Investment Management Co. in Newport Beach, Calif.
Government bonds in the U.K. tumbled Friday and the yield on the nation's 10-year sovereign debt rose to 2.772%.
Shorter-dated bonds led the selling as their yields are directly impacted by central banks' interest-rate policy. Both the yields on the two-year and five-year Treasury notes hit the highest level since early May. The five-year note's yield rose to 1.73% and the two-year note's yield increased to 0.467%.
Despite the selling, bond yields remain at very low levels. Major central banks have slashed interest rates to record lows following the 2008 financial crisis. The European Central Bank was the latest tocut rates last week.
Some analysts said the Fed wouldn't be in a rush to raise rates given the uneven pace of the economic growth while inflation remains contained. Friday, a report showed inflation at wholesale level unexpectedly fell by 0.2% last month.
The Fed has dialed back its monthly bond buying this year and economists widely expect the central bank next week to announce intentions to reduce it by another $10 billion to $35 billion. Fed Chairwoman Janet Yellen said last month the central bank may hold interest rates low for a considerable time to support the economy even as many investors expect the Fed to stop buying bonds by the end of this year.
The 10-year yield had tumbled from 3% at the start of this year, driven by uncertainty over whether the U.S. economy would accelerate after a harsh winter. The world's largest economy contracted by 1% in the first quarter, raising some concerns about whether it could post a 3% growth rate this year, which was forecast by many economists.
In recent days, the 10-year yield has risen after hitting an 11-month low of 2.4% in late May. A number of recent data have shown the economy gained momentum this quarter. Both the manufacturing and service industries have strengthened, as the economy added a bigger-than-forecast 217,000 nonfarm jobs in May.
amorgos34
CHIAGNI & FOTTI SRL
Scontatissima la view di JPM che mi "copia"
(adesso che i prezzi sul G. si sono allineati)Dici che sia meglio per me chiudere la posizione sul Gilt e tornare sul Bund ? (sinceramente piuttosto che shortare il Bund, i cui movimenti sono dominati da troppe varianti, preferirei prendere posizione sul metallo "live cattle")
Seguo male, che Dio benedica l'App. "Investing com"
Ultima modifica:
apaci2
Ad bestias
Scontatissima la view di JPM che mi "copia"
Dici che sia meglio per me chiudere la posizione sul Gilt e tornare sul Bund ? (sinceramente piuttosto che shortare il Bund, i cui movimenti sono dominati da troppe varianti, preferirei prendere posizione sul metallo "live cattle")
Seguo male, che Dio benedica l'App. "Investing com"
Grande Amorgos, ottimo trade sul gilt, per la domanda non so cosa dirti.
Se vuoi una perla di saggezza, problemi telefonici da terzo mondo e future in scadenza, non vanno d'accordo... Soprattutto se hai alle calcagna una mandria.
P.s. Vediamo se la Francia riesce a segnare
apaci2
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amorgos34
CHIAGNI & FOTTI SRL
Non c'ho capito una mazza.
Bellissima maglietta la Francia. Se ci fosse ancora Cantona me la comprerei col suo nome dietro.
apaci2
Ad bestias
Supreme Court Ruling Sparks Argentine Bond Rout | Zero Hedge
Il succo della storia:
O si fallisce bene o non si fallisce
Da notare la conclusione dell'articolo
P.s. cr7 in lacrime è una costante
Il succo della storia:
O si fallisce bene o non si fallisce
Da notare la conclusione dell'articolo
P.s. cr7 in lacrime è una costante
ALTOPDELGLAM
Banned
rialzo TASSI US prima del previsto.....
amorgos34
CHIAGNI & FOTTI SRL
rialzo TASSI US prima del previsto.....
Ti sei venduto stamani una trentina di contratti t note 5 yr ?
Forse molti hanno già scontato una Yellen-falchetta ...
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