Stock Market News – US Treasuries Edge Higher Ahead of FOMC

US Treasuries move higher ahead of Kaplan's FOMC speech and looks for stability in trade negations with China.

West Palm Beach, United States - October 22, 2019 /PressCable/ —

According to Alphabetastock.com, the U.S. Treasuries edged higher during Tuesday’s afternoon session ahead of the country’s 2-year auction, scheduled to be held today by 17:00GMT and Federal Open Market Committee (FOMC) member Kaplan’s speech, also due to be delivered today.

The yield on the benchmark 10-year Treasury yield slipped 1 basis point to 1.780 percent, the super-long 30-year bond yield also fell 1 basis point to 2.275 percent and the yield on the short-term 2-year traded 1-1/2 basis points down at 1.601 percent by 14:15GMT.

Markets retain a ‘risk-on’ stance, with US equities nudging towards all-time highs and US yields, led by the long end, a little higher, while broad USD remains under pressure. This is seemingly on the continued positive comments around a US-China ‘phase 1’ deal, which could result in December tariffs being rescinded, according to US economic advisor Kudlow, Lloyds Bank reported.

Existing-home sales receded in September following two consecutive months of increases, according to the National Association of Realtors. Each of the four major regions witnessed sales drop off last month, with the Midwest absorbing the brunt of those declines.

The median existing-home prices for all housing types in September was $272,100, up 5.9 percent from September 2018 ($256,900), as prices rose in all regions. September’s price increase marks 91 straight months of year-over-year gains.

Meanwhile, the S&P 500 Futures remained flat at 3,010.38 by 14:30GMT.

Malaysian inflation data for September is set to release tomorrow. According to a DBS Bank research report, the consumer price inflation is expected to have slowed down a bit to 1.4 percent year-on-year from 1.5 percent seen in the prior month. However, prices have remained fairly stable, and inflation is expected to stay in range bound between 1.5 percent and 2 percent in the months ahead.

As effects from the post-election policy changes fade from June onwards, inflation has reverted to a more normalized path. This might permit the central bank to shift its attention towards growth. Although GDP growth has accelerated in the second quarter of 2019, that came largely because of a one-off tax refund for consumers and low base in the same period last year.

“We expect growth momentum to ease in the coming months and this is where we think there is room for monetary policy to turn a bit more accommodative. We continue to expect Bank Negara to lower the Overnight Policy Rate by 25bps in the coming months”, added DBS Bank.

Contact Info:
Name: Dave Wiggins
Email: Send Email
Organization: AlphaBetaStock
Address: 401 North Olive Avenue West Palm Beach, West Palm Beach, FL 33401, United States

Source: PressCable

Release ID: 88930137