|Day's Range||1.5470 - 1.5930|
|52 Week Range||1.4750 - 3.2480|
U.S. stocks rose Wednesday as investors considered positive earnings results from Target and Lowe’s and digested the release of minutes from the Federal Reserve’s July meeting.
A lot has happened since the Fed's last meeting where it lowered rates for the first time in over a decade. How will policymakers navigate communication at their annual summit in Jackson Hole this week?
As investors struggle to get their mind around negative yields, analysts say there are few reasons why investors might choose to buy such bonds.
Investors were freaked out about what the inversion of the yield curve — the yield on the 10-year U.S. Treasury note briefly traded below the yield on the 2-year note — means for the economy. But Vincent Deluard, global macro strategist at INTL FCStone, says there are much more important factors at play.
The Federal Reserve debated cutting interest rates more aggressively at its last meeting, although central bankers were united in wanting to avoid the appearance of being on a path to more rate cuts, records from the meeting showed. The U.S. central bank cut rates by 25 basis points at the close of its July 30-31 meeting, with minutes of the meeting published on Wednesday showing broad concern among policymakers over a global economic slowdown, trade tensions and sluggish inflation. Since that meeting, the Fed has come under increasing pressure to cut borrowing costs more, including a call by U.S. President Donald Trump on Wednesday for the Fed to slash its benchmark rate.
Bank of America Corp.’s CEO Brian Moynihan says he doesn’t see a recession in the offing because the U.S. consumer remains healthy.
The real-estate market nevertheless remains on shaky footing as the bumper spring and summer home-buying season begins to draw to a close.
U.S. stocks finish at Tuesday’s low as investors contend with worries about the strength of the U.S. economy and political developments in Europe that are weighing on government bonds.
The Federal Reserve has lost control of interest rates as evidenced by the federal funds rate trading higher than any part of the U.S. Treasury yield curve, Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Tuesday. "What else do you need to call it an inversion?" Gundlach said in a telephone interview. At around 1.55% and 2.03%, the yield on the benchmark 10-year Treasury note and 30-year Treasury bond, respectively, are below the target federal funds rate of 2.25% to 2.5%.
U.S. stocks finished lower on Tuesday as geopolitical jitters and U.S. economic concerns hung over investors ahead of the Federal Reserve's Jackson Hole symposium at the end of the week. The S&P 500 fell 0.8% to end around 2,901. The Dow Jones Industrial Average shed 173 points, or 0.7%, to end near 25,962, based on preliminary numbers. The Nasdaq Composite slipped 0.7% to finish around 7,949. Fears over Italy's political situation grew after Prime Minister Giuseppe Conte resigned following a spat with Matteo Salvini, leader of the League party. In the U.S., President Donald Trump lambasted the Federal Reserve for failing to slash interest rates. The 10-year Treasury note yield fell 4.6 basis points to 1.557%. Bond prices move in the opposite direction of yields. In company news, shares of Home Depot Inc. rose more than 4% after its earnings beat analysts' expectations.
Treasury yields fall Tuesday as investors deal with headlines around U.S.-China trade tensions and discussions of potential fiscal stimulus options by the White House.
Gold futures climb on Tuesday, with a slide in U.S. Treasury yields helping the haven metal recoup more than a third of what it lost a day earlier when a rally in the U.S. stock market prompted some settling in bullion.
At the Jackson Hole Economic Policy Symposium in 2014, Mario Draghi made a polite departure from the usual rhetoric around austerity, saying “it would be helpful” if fiscal policy could play a greater role, alongside monetary policy, in boosting demand. Five years later, central bankers meet again in Jackson Hole as Mr Draghi prepares to leave the European Central Bank. The issue at stake is that there is not enough monetary policy space to deal with the next downturn.
Treasury prices fall Monday, pushing yields higher, after reports that Germany was entertaining the use of fiscal stimulus and signs that U.S.-China trade talks may be restarted.
President Donald Trump on Monday criticized Fed Chairman Jerome Powell ahead of the central banker's highly anticipated speech later this week. In a series of tweets, Trump said the economy was very strong "despite the horrendous lack of vision by Jay Powell." The president repeated his call for the Fed to slash interest rates to bolster the U.S. and global economy. He urged the Fed to buy bonds and expand its balance sheet, a policy known as quantitative easing. Powell will speak Friday at 10 a.m. Eastern at the central bank's summer retreat at Jackson Hole.
Whether there’s a recession soon may depend more on the president of the United States, and his trade policies, than anything else, writes Tim Mullaney.
The spread between the 2-year and 10-year yield is now back above 10 basis points, and the further they get away from each other the more things might calm down. Another piece of news that might be helping: Reports in the media say Huawei will get a three-month extension from the U.S. Department of Commerce on a license that allows it to buy parts from U.S. companies. Fed Chair Jerome Powell is scheduled to speak Friday morning.
Recessions are a natural part of a growing economy and sometimes driven by fear as much as anything -- so let's pick apart news of the inverted-yield curve to see what all of last week's hype was about.