The Federal Reserve is likely to announce next week a round of asset purchases focused on mortgages to bolster President Barack Obama’s efforts to help debt-strapped homeowners refinance, Toronto-Dominion Bank’s Richard Gilhooly said.
The dollar declined from a one-week high as speculation the Federal Reserve will begin reducing its stimulus measures as soon as next month weighed on demand for assets denominated in the U.S. currency.
Treasuries fell, pushing 30-year bond yields to almost a two-year high, after reports showing stronger-than-forecast economic growth and jobs bolstered speculation the Federal Reserve may reduce its bond-buying.
Treasury 10-year-note yields reached the highest levels in two years on heightened speculation a strengthening U.S. economy will prompt the Federal Reserve to reduce its bond-buying program as soon as next month.
Treasury 30-year bonds fell, pushing yileds to almost a one-month high, after the dollar strengthened beyond 100 per yen for the first time in four years, damping demand for U.S. government securities.
Treasury 10-year yields rose to the highest level in more than a week as orders for durable goods exceeded forecasts, bolstering bets the economy is strong enough for the Federal Reserve to start trimming bond purchases.