Briefing.com – Treasuries Pull Back

Yields Edge Higher as Stocks Bounce

• The Treasury market is pulling back at the moment as the S&P 500 recovers 9 points from its low to trade down “only” 1.07% to 1,917.93
• Markets are awaiting Fed Chair Yellen’s speech later this afternoon at the University of Massachusetts
  • No Q&A will follow the speech. An economist at JP Morgan is saying that Yellen will refute the prevailing interpretation of the FOMC meeting which is that the FOMC significantly changed its strategy for policy normalization. JP Morgan is saying that she will explain that the FOMC was only buying a little insurance against downside risks
    • He is disregarding the possibility that the market has moved interest rates so dramatically because it believes that the insurance policy will come due
• WTI crude is up more than a dollar from its low, now trading up 0.67% to $44.78/bbl.
• The U.S. Dollar Index has recovered much of its losses and is currently losing only 0.23% to 95.85
• Gold is resting on its laurels, up 1.86% to $1,152.50/troy oz. We continue to believe that the rally out of the July low may turn into a protracted affair. Clearing out resistance at the March 2015 low around 1,145 this morning opens up room to the May low at roughly 1,170
• As a reminder, the Catalonian regional election will be held on Sunday and separatists are predicted to do well. Political events in Spain have been reducing the returns on investments in the country this year
• Yield Check:
  • 2-yr: -3 bps to 0.67%
  • 5-yr: -4 bps to 1.43%
  • 10-yr: -5 bps to 2.10%
  • 30-yr: -6 bps to 2.89%

Read more: http://briefing.com/investor/markets/bond-market-update/2015/9/24/treasuries-pull-back.htm#ixzz3mg09oIiu

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