The Federal Reserve will have a relatively small holding of Treasury securities even after its second round of bond buying concludes, according to Carl Lantz , Credit Suisse AG’s head of U.S. interest-rate strategy.
When the housing bubble burst in 2006, U.S. policy makers looked to Japan for clues about what to do -- and not do -- in response. Now their attention is shifting to Europe as America gets set to follow that region with a concerted attack on its budget deficit.
The surge in stock and bond markets after President Barack Obama embraced a $3.7 trillion debt- cutting plan from a bipartisan group of senators may add momentum to the administration’s push for a broad deficit deal.
Treasury yields were close to record lows after Federal Reserve Chairman Ben S. Bernanke refrained from discussing specific steps for further monetary stimulus, sustaining the refuge appeal of the world’s safest assets.
Money-market derivatives signal traders expect the Federal Reserve will most likely lift its target rate for overnight loans between banks in the second quarter of 2013, according to Credit Suisse Group AG analysis.
Treasury 10-year note yields approached all-time lows after the U.S. sold $21 billion of the securities at a record rate and minutes from the Federal Reserve’s last meeting showed some members favor more stimulus.
Former Republican House Speaker Newt Gingrich says Barack Obama’s policies are “artificially extending the recession.” Congressman John Boehner , the party’s leader in the House, says “stimulus policies aren’t working.” Republican Senator Jim Bunning calls Federal Reserve Chairman Ben S. Bernanke’s tenure “a failure.”