Treasury yields reverse post-employment report surge


Strong employment report and coming Fed rate hikes? Long-term Treasurys have their eye on something else, with the yield on the 10-year note off another four basis points in early action to 2.57%. The yield touched 2.70% in wake of Thursday's fast nonfarm payroll number.

Previously: Treasury yields jump, gold slumps after strong jobs print

Checking Eurodollar futures for expectations of tighter monetary policy, they've backed off a bit from rate hikes as well, the June 2016 contract ahead by four basis points, but still pricing in a Fed Funds rate about 130 basis points higher in two years then it is now.

TLT +0.75%

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Comments (9)
  • Chajac73i
    , contributor
    Comments (13) | Send Message
     
    Is the up move in TLT saying rates are going down? How could a good economy has declining interest rate?
    8 Jul 2014, 10:10 AM Reply Like
  • Brian58
    , contributor
    Comments (314) | Send Message
     
    Cause the data being fed to us are lies/propaganda to make us feel richer. Growth from debt is not the solution.
    8 Jul 2014, 06:03 PM Reply Like
  • andrewtoney
    , contributor
    Comments (100) | Send Message
     
    It's far from surprising:Us economy is not performing well.Regards.
    8 Jul 2014, 10:54 AM Reply Like
  • convoluted
    , contributor
    Comments (2489) | Send Message
     
    On a bubble to nowhere; or, as my grandpappy used to say-'if you don't know where you're going any road will get you there.' The trading group Journey expressed similar sentiment by noting that the wheel in the sky kept on turning.
    8 Jul 2014, 11:47 AM Reply Like
  • simondtate
    , contributor
    Comments (12) | Send Message
     
    Its pretty clear to me the Treasury market is being pulled and is factoring in the Europe affect. US monetary policy was taking the strain. Now it is the turn of Europe. Europe combined with Japan now is creating a strong downward pull on US interest rates. It is really interesting to me how little press this gets on US/Seeking Alpha pages. Remember the USA is part of a bigger global financial network - this is nothing to do with the USA underperforming !
    8 Jul 2014, 12:02 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
     
    How so? Are you saying that Europeans and Japanese are buying US Treasuries?
    8 Jul 2014, 01:27 PM Reply Like
  • simondtate
    , contributor
    Comments (12) | Send Message
     
    Off course - sterling/the Euro/Japanese Yen have all been relatively strong recently. In Europe and Japan central banks are full-on with the monetary gas peddle. For these investors treasuries look good value on a spread basis.
    8 Jul 2014, 04:23 PM Reply Like
  • Doug Meeks
    , contributor
    Comments (1934) | Send Message
     
    Euro central bank has negative fund rate, yes a -0.10%.
    8 Jul 2014, 10:20 PM Reply Like
  • MisterJ
    , contributor
    Comments (1180) | Send Message
     
    If the FED did not pay .25% interest on bank reserves we would have negative short term interest rates as the banks would have to buy t-bills until the yield is down to negative, competing with international buyers sovereign and otherwise. I think we will see this soon as the FED exits this bank subsidy going forward as well. This will drive l/t rates lower too IMO.
    8 Jul 2014, 10:33 PM Reply Like
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