Five years after Federal Reserve Chairman Ben S. Bernanke dropped U.S. interest rates toward zero to end the worst economic crisis since the Great Depression, America’s financial markets have become the envy of the world.
Treasuries rose, pushing 10-year yields down for the first week since October, as Federal Reserve Chairman-nominee Janet Yellen underscored her commitment to strengthening the economy before cutting monetary stimulus.
Treasury’s auction of $16 billion in 30-year bonds drew lower-than-average demand as investors favored the three- and 10-year note sold this week on signs the Federal Reserve will push on with its bond-buying stimulus.
U.S. government debt is becoming increasingly perilous to options traders who are pushing up the cost to protect against sudden losses by the most in a year, even as Federal Reserve stimulus suppresses volatility.
U.S. government bonds are acting more like equities than any time since before the credit crisis, making Treasuries a hidden risk to investors becalmed by the prospect of the Federal Reserve prolonging stimulus into 2014.
The worst first half for Treasuries in four years has wrung the unprecedented Federal Reserve stimulus out of bond prices as investors now look to low inflation and slow economic growth to contain yields.
The U.S. trade deficit probably widened in August as imports stabilized following their biggest drop in more than a year, pointing to an economy struggling to regain momentum, economists said before a report today.