Bond prices are on the rise this week after the Federal Reserve again sounded a dovish call. They could keep rising, says Todd Gordon of TradingAnalysis.com.
div > div.group > p:first-child"> The 10-year yield declined to its lowest level in 15 months on Thursday, a day after the central bank suggested it would not hike rates in 2019 in response to signs of slowing economic growth. Bond prices, which move inversely to yields, typically rise in response to expectations of weaker growth as investors flock to low-risk assets.
The Fed said it would reduce the amount it rolls off its billion-dollar balance sheet in May and then end the program in September. Since October 2017, it had paired balance-sheet reduction with rate hikes to tighten monetary conditions."That, in theory, is supposed to force savers into the stock market, buy more stocks, push stock prices higher, but one thing I think it will also do is push bonds higher, if there's not more supply coming to market," he said.
"Shorts don't have the power to push to new lows, so if shorts are falling behind, buyers are growing more aggressive, they should be able to punch us out of that resistance zone," he said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Don't be lured by Facebook's lower stock price, portfolio manager warnsStrategic Wealth Partners' Mark Tepper says Alphabet is a better bet than Facebook.
Read more »
Americans to bet $8.5 billion on NCAA's 'March Madness' basketball tournament: reportAbout 47 million people - one in five American adults - are expected to bet a co...
Read more »
Pfizer Adds to Big Pharma’s Gene-Therapy Deal StreakPfizer will pay up to $636 million for the rights to gene therapies under development at Vivet Therapeutics, as pharmaceutical companies bet on the ability of these types of treatments to cure intractable diseases.
Read more »
Biogen loses same Alzheimer’s bet others have lostThe failures of similar drugs in formal trials meant Biogen’s effort was always a long shot. Yet ditching it vaporized $18 bln, or over a quarter, of the biotech’s value. The giant market for a therapy and the fear of missing out lured in both the company and Wall Street.
Read more »
Israel suspects Iran of hacking election frontrunner Gantz's phone: TVIsrael's Shin Bet security service suspects Iran of hacking the mobile phon...
Read more »
Fed to raise interest rates once more in third quarter, then done: Reuters pollThe U.S. Federal Reserve will remain patient for a little longer than thought ju...
Read more »