|Bid||123.36 x 1600|
|Ask||123.37 x 900|
|Day's Range||123.17 - 123.71|
|52 Week Range||116.49 - 129.57|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.15%|
Yahoo Finance's Seana Smith discusses the latest market action with Jared Blikre live from the floor of the New York Stock Exchange.
The key reason for the bond market sell-off was the fear that inflation is set to increase in the months ahead. According to data reported on January 12, the consumer price index (or CPI) rose 0.1%, bringing the year-over-year inflation figure to 2.1%. This rise in inflation could keep rate hike expectations elevated, leading to higher yields and lower bond prices.
Stocks soared on Thursday thanks to the largest gain by transportation stocks since 2001 and a rally in Treasury bonds as fears China could slow its bond purchases — the reason for some market unpleasantness earlier in the week — faded away after officials essentially labeled the report fake news.
Speculation is rife that the trade tension between the U.S. and China will increase this year. First, the latest Blomberg report states that China may slow down, or even stop, the purchase of U.S. government bonds, citing that U.S. debt has become less attractive than other assets. Since China is the biggest buyer of U.S. sovereign bonds holding $1.2 trillion of U.S. debt, the action could lead to a broad sell-off in the equity markets.
The catalyst was reports overnight that China could be reconsidering its foreign exchange reserve holdings in U.S. Treasury bonds — a major source of buying demand that has for decades helped keep American borrowing costs low. One, the flow of quantitive easing bond buying stimulus from global central banks will soon turn negative (witness the Bank of Japan’s decision earlier this week to taper its purchase pace).
The troubles surrounding a flattening yield curve extended into the new year with the spread between the US ten-year and two-year Treasuries narrowing to a level last seen before the financial crisis of 2008. A flattening yield curve, if progress could lead to a yield curve inversion, could be a signal for a future recession. The reason for the yields falling lower was the lower level of inflation expectations.
The US FOMC December meeting minutes and the December employment data are key economic data releases that could impact markets this week.
The Fed rolled out another rate hike at its final meeting of 2017. The target range for the federal funds rate was increased by 0.25% to 1.25%–1.50%, and the Fed has…
After falling for two consecutive trading weeks, the US Dollar Index started this week on a weaker note and traded with mixed sentiment.
The US Dollar Index broke its three-week-long gaining steak this week and fell to three-week low price levels on Wednesday.
After gaining for three trading weeks, the US Dollar Index started this week on a weaker note and fell in the first four trading days of the week.