Buy on the rumor, sell on the news. That ancient bit of trading advice seems to describe last week’s data for Treasury yields. In the days leading up to Friday’s report on payrolls for April, the benchmark 10-year yield increased to a new year-to-date high on Wednesday, only to slump when the better-than-expected jobs report arrived. The conventional wisdom interprets April’s solid job gains as a convincing signal that the economy is rebounding after a weak first quarter. In turn, the upbeat outlook has renewed forecasts that the Fed will lift interest rates later this year. Maybe, although the Treasury market seems to be having second thoughts… again.
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Daily Archives: May 11, 2015
Initial Guidance | 11 May 2015
● US job gains accelerate but wage growth is meager | LA Times
● GDPNow forecast of US Q2 growth (as of May 5): +0.8% | Atlanta Fed
● Euro zone set to report solid growth, for a change | Reuters
● China Cuts Interest Rates as Economic Growth Slows | WSJ
● Greece Readies for Another Week of Deadlines | Bloomberg