Why Bond Market Uncertainty Could Be Here to Stay
Investors in the bond market remain anxious that there has been no clear signal from the Fed.
Equity markets consider rate hikes to be negative on stocks, but that doesn’t seem to be the case now, likely because the rate is only now being “normalized.”
As per the latest JOLTS report, about 2.1 million Americans quit their jobs voluntarily in August, which was a decrease of 70,000 from the previous reading.
The announcement of the GOP tax reform plan added to the pressure on bond markets.
The US Dollar Index regained strength in September and rose for four consecutive trading weeks. However, the US Dollar Index opened lower this week.
The carnage in bond markets (BND) that was unveiled after the FOMC September policy statement continued last week as well.
In September, Fed Vice Chair Stanley Fisher submitted his resignation, citing personal circumstances, and will step down in mid-October.
Bullard said that the current growth rate in the US economy is likely to remain consistent with recent quarterly growth—near the 2% mark.
In the long run, Williams said it would be difficult to predict how markets would react to the Fed’s balance sheet unwinding program.
In her first speech since the FOMC’s surprise September policy statement, Fed Chair Janet Yellen sounded dovish in her assessment of the US economy.
The US Dollar Index started this week on a stronger note and rose in the first three trading days of the week. It’s stable in the early hours on Friday.
The US dollar (UUP) was being written off before the beginning of September, as the Fed was expected to stay on hold and other major central banks were expected to start…
The FOMC’s (Federal Open Market Committee) meeting on September 20 changed the outlook for bond markets (BND). It suggested that the Fed could be looking at another rate hike by…
Average weekly unemployment claims are among the indicators used in the Conference Board Leading Economic Index (or LEI). Weekly unemployment claims, which are seasonally adjusted, give an idea of unemployment…
The US Dollar Index regained strength last week and started this week on a stable note. The dollar rose after the FOMC’s statement.
The US dollar rallied after the latest FOMC (Federal Open Market Committee) meeting statement was released on September 20.
The US Dollar Index maintained its strength and started this week on a stable note. The US Dollar Index is trading with strength early on September 21.
The bond markets are the most impacted asset class by any changes to the Federal interest rates.
In its efforts to revive the US economy from the Great Recession, the US Fed started purchasing US government-backed securities in 2008.
Slow US inflation growth has been a concern for the US Fed and was one of the key reasons that the Fed raised interest rates only twice in 2017.