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No matter your age, what the Federal Reserve does to interest rates will most likely affect you. Economists say the central bank is nearly certain to raise what's called the federal funds rate by a quarter of a percentage point Wednesday to a range of 2 percent to 2.25 percent, the third such increase this year.
The Federal Open Market Committee will begin the second and final day of its September monetary policy gathering Wednesday, with analysts expecting the Fed to announce a quarter-point rate hike when it concludes its meeting. In data, mortgage applications are due out at 7 a.m. ET, followed by new home sales at 10 a.m. ET. The yield on the benchmark 10-year Treasury note was lower at around 3.085 percent at 4:50 a.m. ET, while the yield on the 30-year Treasury bond was in the red at 3.215 percent.
Asian markets rose on Wednesday as traders awaited a third interest rate hike by the U.S. Federal Reserve for this year. KEEPING SCORE: Japan's Nikkei 225 rose less than 0.1 percent to 23,953.98. Hong ...
U.S. government bond prices fell again Tuesday, pushing the 10-year Treasury note’s yield closer to a seven-year high amid gathering optimism about the global economy and expectations for tighter monetary policy from major central banks. The yield on the benchmark 10-year U.S. Treasury note rose to 3.102% from 3.078% Monday, settling just below its May 17 close of 3.109%—a high-water mark dating back to July 2011. Yields, which rise when bond prices fall, have been climbing this month thanks in part to encouraging developments in emerging markets and Italy, which were at the center of investors’ concerns just a month ago.
With the Federal Reserve all but certain to raise interest rates on Wednesday, investors may need to brace for sudden, unexpected market volatility as stocks have been underperforming on Fed Days in recent months.
Treasury prices weaken, pushing the yield on the 10-year note above 3.10% a day ahead of a Fed decision that is expected to delivery the third rate increase of 2018.
The Dow Jones Industrial Average and the S&P 500 on Tuesday extended a multisession skid while the Nasdaq booked its second straight gain, highlighting a period of divergence for the benchmarks ahead of the Federal Reserve's decision. The Dow closed off by about 67 points, or 0.3%, at 26,495, the S&P 500 index gave up 0.1% at 2,915. The S&P 500 has ended lower the past three days, while the Dow has posted back-to-back declines. However, the Nasdaq Composite Index eked out a second gain in a row, up 0.2% at 8,007, with the technology and internet-centric gauge following the fortunes of Apple Inc. higher for a second straight session. The Fed is widely expected to deliver its third rate increase of 2018 but investors will follow closely the central bank's projections for future rate increases as well as comments from Fed Chairman Jerome Powell Wednesday afternoon. Wall Street has been fixated on the developments in trade clashes between China and the U.S., but have managed to post positive returns, amid an apparent escalation of tensions between the economic superpowers. Market participants fret a tit-for-tat dispute between Washington, Beijing and other global partners could spiral into a full-blown trade conflict that crimps corporate profits. However, so far stocks have traded within range of all-time highs as investors focus on the domestic economic strength. Equity benchmarks also met some resistance from rising yields, with the 10-year Treasury note hitting above 3.10%, flirting with its highest level in about seven years, according to Dow Jones Market Data. Bond prices fall as yield rise. Climbing rates follow expectations that the Fed will dial up rates, which can make borrowing costs more expensive for corporations, while also undermining the appeal of risk-free government paper against stocks. Market participants also watched President Donald Trump deliver a speech in front of the United Nationals general assembly in New York, where he criticized the Organization of the Petroleum Exporting Countries for higher crude-oil prices and defended his administrations hard-line trade tactics.
The Federal Reserve is seen as virtually certain to deliver a rate increase Wednesday, leaving investors to focus on the centra bank’s projections, policy statement and, most of all, the pronouncements of Chairman Jerome Powell.
A longstanding bond trade has been put on ice thanks to a changing climate in the U.S. Treasury market, which is being buffeted by a flood of supply and a drought in volatility. This is draining the appeal of playing the difference between them that had been a favorite among hedge funds and other relative-value investors who seek out gaps in the "fair value" of securities. "You've seen a serious pullback from a lot of Treasury traders, especially relative-value traders in terms of the amount of balance sheet that they're allocating to U.S. Treasury strategy because everything is so close to fair," said David Rice, head of relative-value arbitrage at the Gelber Group.
The U.S. benchmarks are setting up well for a strong year-end with the third quarter set to conclude this week, writes Michael Ashbaugh.
The Federal Reserve will begin its two-day monetary policy gathering Tuesday, with analysts expecting the central bank to announce a quarter-point rate hike. Members of the FOMC are grappling over how much more monetary tightening is necessary to keep the economy (and inflation) healthy. U.S. government debt yields continued their upward climb on Tuesday ahead of the Federal Reserve's policy meeting.
U.S. government bond prices swung between gains and losses before falling Monday on signs that conditions are improving for the global economy, curbing demand for safe assets. Yields rose in early trading after comments from European Central Bank President Mario Draghi suggested that the European economy may be poised to accelerate, adding to optimism about the global economy. Demand for the safety of government bonds has waned after central bankers in Argentina and Turkey began raising interest rates to reign in rapid inflation.
Treasurys weakened Monday, pushing up yields, as investors looked ahead to a Federal Reserve meeting that’s expected to deliver a midweek rate increase.
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Seana Smith to discuss the latest market moves.