|Day's Range||2.1920 - 2.2370|
|52 Week Range||1.9050 - 3.4550|
The Federal Reserve cuts the funds rate by a quarter point. Wilmington Trust Chief Economist Luke Tilley says this is aligned with their expectations, but if the Fed cut by half a point, then they know more than they let out. He joins Yahoo Finance's Akiko Fujita and Adam Shapiro.
Overnight the Federal Reserve tackled a liquidity crunch in the repo market. Yahoo Finance's Julie Hyman, Adam Shapiro, Brian Cheung, Krishna Memani, Invesco Vice Chair of Investments and Danielle DiMartino Booth, Quill Intelligence CEO and Chief Strategist discuss.
The Fed 2-day meeting wraps today with an expected rate cut announcement from Jay Powell. Yahoo Finance's Julie Hyman, Adam Shapiro, Krishna Memani, Invesco Vice Chair of Investments and Danielle DiMartino Booth, Quill Intelligence CEO and Chief Strategist discuss.
The Federal Reserve is expected to cut rates again this afternoon. Ethan Harris, head of Global Economics at Bank of America Merrill Lynch joins Yahoo Finance to discuss what the effect of a rate cut on the markets.
The Federal Reserve is meeting today and will announce whether it's going to cut rates again. Yahoo Finance's Brian Cheung breaks down what to expect.
Treasury Secretary Steve Mnuchin says the Trump administration is considering issuing 50 or 100-year bonds, and that there's no plans to intervene in the dollar. Yahoo Finance's Brian Sozzi and Brian Cheung discuss.
Yahoo Finance's Julie Hyman, Brian Cheung, David Nelson of Belpointe Asset Management and Colleen Denzler of Smith Capital discuss.
Stocks tumbled after China said it would impose retaliatory tariffs on U.S. goods followed by Trump ordering U.S. companies to look for ‘alternatives to China.’ Bank of America Senior U.S. Economist Joe Song joined Yahoo Finance’s The Final Round with his take on whether U.S. consumers are feeling the impact from the trade war.
Butcher Joseph Asset Management Chief Investment Strategist Nancy Tengler joins Yahoo Finance's The Final Round to discuss why negative yields are dangerous for markets and whether the inverted yield curve is an indicator of a looming recession.
The New York Federal Reserve Thursday morning completed its third repurchasing operation, or repos, in as many days to stem spikes in crucial overnight funding market for financial institutions. The U.S. central bank carried out $75 billion of repos, with the Street submitting bids for $83.875 billion, sources said, providing liquidity for Wall Street dealers by temporarily buying securities. Earlier this week, a surge in the repurchasing rate, used by hedge funds and banks to fund their trading operations, pushed the fed-funds rate close to the top of its targeted range. The incident has stirred worries that the central bank is at risk of losing its grip over its benchmark interest rate. On Wednesday, Federal Reserve Chairman Jerome Powell said at a news conference that the central bank is likely to execute similar auctions and said he doesn't see the recent jump in overnight money-market rates on Monday and Tuesday as a "having implications for the broader economy, or for the economic outlook, nor for the our ability to control rates."
The New York Fed said it would conduct an overnight repurchasing operation for the third time this week at 8:15 a.m. Eastern on Thursday. The U.S. central bank will offer up to $75 billion of repos, temporarily buying securities from Wall Street dealers to inject liquidity into the system. Earlier this week, a surge in the repurchasing rate, used by hedge funds and banks to fund their trading operations, pushed the fed funds rate above its target range. Fed Chairman Jerome Powell said in a Wednesday press conference that the central bank would stand ready to use its current tools to address pressures in money markets.
The fed funds rate traded on Tuesday 5 basis points above the upper bound of its target range between 2.00% to 2.25%, according to Federal Reserve data released Wednesday morning. The recent climb in overnight repurchasing rates, used by hedge funds and other leveraged investors to finance their trading operations, has resulted in a knock-on increase in the fed funds rate. Since both are short-term sources of funding, a rise in the overnight repurchasing rate means that borrowers in fed funds have to pay up to attract investors. The fed funds rate pushing above its target range underlines analysts' concerns that the U.S. central bank is having trouble keeping its benchmark interest rate at its desired levels. The Fed launched $75 billion of overnight repos on Wednesday morning, in order to inject liquidity bank into the system and to bring the fed funds rate in line within its preferred range. This is the Fed's second repo operation this week.
The New York Fed held an overnight repurchasing operation for the second time this week on Wednesday morning. The U.S. central bank carried out the full $75 billion of repos, temporarily buying securities from Wall Street dealers to inject liquidity into the system. Earlier this week, a surge in the repurchasing rate, used by hedge funds and banks to fund their trading operations, pushed the fed funds rate close to the top of its targeted range. The incident stirred worries that the central bank is at risk of losing its grip over its benchmark interest rate.
Bond investor Jeffrey Gundlach said the Federal Reserve will take the disruption in short-term money markets as a warning sign.
The New York Federal Reserve bank said it was carrying out up to $75 billion worth of repuchase agreements, or repo, on Tuesday between 9:30 a.m. Eastern to 9:45 a.m. They said the move would help bring back the central bank's benchmark interest rate, or the federal funds rate, back to its target range of between 2% to 2.25%. Market participants have complained this week that a lack of liquidity in funding markets has pushed the fed funds rate above the interest rate on excess reserves, and that the central bank had lost its grip over short-term interest rates. Analysts say the repurchase operations will boost reserves at banks and help ease funding pressures.
This week could see the biggest U.S. bond-market selloff in several years. Traders may be winding down their bullish positions on long-term government debt after a huge rally in recent months, analysts said, while others highlighted more constructive developments on international trade, geopolitics, and the U.S. economy which may be lowering the risk of recession. The 2-year Treasury note yield (BX:TMUBMUSD02Y) is on track Friday for its biggest weekly gain since 2009, after rising 24 basis points this week to trade at 1.769%.
President Trump’s latest Twitter escapade against the Fed calls for negative interest rates to jump-start the slowing economy. But the prospect of using a monetary tool usually reserved for deeply-troubled economies has many strategists on Wall Street seriously worried. Butcher Joseph Asset Management Chief Investment Strategist Nancy Tengler believes the practice of implementing negative interest rates is “seriously dangerous.” The “$16 trillion in negative yielding debt around the globe - I don't understand how you account for it as an investor,” Tengler said in an interview on Yahoo Finance’s The Final Round.
The recent surge in Treasury yields is ravaging a group of market participants that had so far reaped significant gains from the bond-market rally this year.
If you are in the latter camp, let me tell you how you should build a bond portfolio. The best way to build a bond portfolio is to start by thinking about the risks. Yes, I know that U.S. Treasuries cannot technically default (or at least, they haven’t so far).
Bonds in the late 1950s entered a devastating bear market that lasted more than two decades, as bond yields rose by several orders of magnitude — as you can see from the accompanying chart. Many commentators are predicting that this week’s development will presage a similarly devastating bear market for bonds. For insight, I turn to a study into what causes the Treasury yield to be higher or lower than the dividend yield.
Krishna Memani, Invesco’s vice chair of investment, talks to Yahoo Finance’s On the Move about the looming interest rate cuts and inverted yield curve.
To understand how truly President Donald Trump is screwing up financial markets, chew on this: bond funds are outperforming tech stocks.