Treasury two-year note yields will rise to almost 1 percent by the end of 2014 as steady labor market gains lead investors to price in a boost to the Federal Reserve’s target rate by June 2015, according to Barclays Plc.
Mortgage- and asset-backed securities, which have gained as much as 60 percent this year, will benefit in 2013 as weak global economic growth and central bank actions keep interest rates low, according to Barclays Plc.
Ben S. Bernanke is signaling his willingness to double down on a three-year bet that’s failed to revive housing, showing the extent of the Federal Reserve chairman’s effort to wrest a recovery from the deepest recession.
U.S. Treasury Secretary Jacob J. Lew is trying to persuade Congress to raise the $16.7 trillion debt ceiling without the drama that contributed to a stock market rout in 2011. A stronger economy this time around may help keep investors calm.
House Speaker John Boehner ’s appearance before Wall Street leaders tonight challenges him to provide reassurance that Congress will raise the U.S. debt limit without undercutting Republican demands for spending controls.