Friday, August 27, 2010

BOOM!!! Goes the Treasuries

Reuters details:

U.S. Treasuries prices fell sharply on Friday after Federal Reserve Chairman Ben Bernanke signaled no new bond buying by the U.S. central bank was imminent, triggering the biggest sell-off in three months.

Although Bernanke did mention such purchases as a possibility, investors found nothing in his comments to indicate the Fed has any immediate plans to stimulate the slowing economy through an expansion of current bond buying.

For a market already at rich levels, this was an important nuance that further fueled a sell-off ignited after data earlier on Friday showed a revised picture of U.S. economic growth was not quite as weak as expected in the second quarter.


Source: Bloomberg

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