Bond investors need to stick with a selective approach even if the Federal Reserve looks to be in an interest rate cutting mode.
Treasury bond prices rose Wednesday as fresh evidence of a dismal US housing market overshadowed data showing inflation pressures rose slightly, bolstering investors' hopes for an interest rate cut.
The Federal Reserve will cut interest rates again but probably not at the October policy-making meeting, said Bill Gross, manager of the world's biggest bond fund on Tuesday.
U.S. government bond prices rose Tuesday as worries about credit markets and slipping equities prompted investors to seek the safety of Treasurys.
Foreign investors fled from U.S. assets in August as a meltdown in the U.S. subprime mortgage market triggered a global credit crunch, Treasury Department data showed Tuesday.
U.S. Treasury debt prices rose Monday as stock losses inspired by a weaker financial sector and fresh worries about credit shortages rekindled a bid for safe-haven government bonds.
U.S. Treasurys fell Friday after firm economic data eroded expectations of a bond-friendly Federal Reserve rate cut this month and rebounding stocks sucked cash out of the safe-haven debt market.
US Treasuries fell Thursday after lower-than-expected weekly jobless claims bolstered views of a healthy labor market, lowering expectations of a near-term interest rate cut.
U.S. government bond prices were little changed Wednesday, as doubts over the outlook for future Federal Reserve interest rate cuts offset an earlier boost in Treasuries provided by sliding stocks.
Federal Reserve officials Tuesday said the U.S. economic outlook is unclear, but credit market strains that led the central bank to cut interest rates sharply last month are easing, suggesting a follow-up rate cut is not a done deal.
Stocks ended higher after minutes from the Federal Reserve 's last meeting encouraged investors hoping for further rate cuts. "I don't think there is any question it's a good thing for stocks, it just reinforces the view from the investor's perspective that the Fed's there to save the day if necessary," said Michael Chren, portfolio manager at Allegiant Asset Management.
U.S. Treasurys rose slightly Tuesday in lackluster trade as investors looked ahead to the release of minutes from the Federal Reserve's last policy meeting when the central bank cut benchmark interest rates.
A sprinkling of deal news, sinking oil prices and a firmer dollar are in the background as stocks edge higher Tuesday. The big news for markets though will come in the Federal Reserve's meeting minutes, set for release at 2 p.m. ET. The minutes of the September 18 meeting and the August 16 call will be released. Traders are watching for hints of what made the Fed take the aggressive step to slash the Fed funds rate by a half point, greater than the 1/4 point widely expected.
The Fed and the start of earnings season are two big focuses for stocks Tuesday, after Monday's dullish session. The Fed releases minutes of its September 18 meeting and its August 16 call at 2p ET. This time last week, traders would have been digging into those minutes to find any confirmation of their view that rates will be cut again at the Fed's October 31 meeting.
U.S. Treasury debt prices plunged on Friday, after a much stronger reading on the labor market suggested the Federal Reserve might not need to cut interest rates later this month.
U.S. Treasury debt prices rose Thursday after a steep drop in factory orders suggested businesses are feeling the brunt of a slowing economy.
The world's largest brokerage Merrill Lynch, which is expected to announce third-quarter losses in fixed income, said that global head of fixed income, currencies & commodities, has left the firm.
Merrill Lynch said on Wednesday that David Sobotka replaced Osman Semerci as global head of fixed income, currencies & commodities.
U.S. Treasury prices slipped Wednesday after service sector data showed more hiring and a spike in costs, both worrisome inflation omens for bonds.
U.S. Treasurys edged up on Tuesday after data showing pending homes sales fell three times more than forecast, blunting hopes for a swift end to a two-month lending crisis in financial markets.