Taper out of picture? Treasurys rally as dollar heads south


Maybe most interesting in wake of the debt deal is the action in the dollar and Treasurys - both of which signal the Fed taper is out of the picture for some time. Yesterday's Beige Book indicated slowing economic growth across 4 of 12 Fed districts.

Off another 5 basis points in morning action, the 10-year Treasury yield is down to 2.62% from 2.76% just ahead of the deal announcement yesterday. TLT +0.6%, TBT -1.3%.

The dollar (UUP, UDN) is getting hit across the board, with the euro (FXE), pound (FXB), yen (FXY), and swissie (FXF), aussie (FXA), and loonie (FXC) all posting significant gains. The Swiss franc is the strongest, up 1.1%.

Treasury ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX.

Currency ETFs: UUPT, UDNT, ERO, ULE, URR, EUO, DRR, EUFX, GBB, FXY, JYN, YCL, YCS.

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Comments (2)
  • Guardian3981
    , contributor
    Comments (2535) | Send Message
     
    I think the issue is not that we shouldn't taper, but more so what will happen if we do?
    17 Oct 2013, 10:21 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11339) | Send Message
     
    Peter Schiff was right again.
    17 Oct 2013, 10:42 AM Reply Like
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