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Sep 16, 2014

Bond traders see more turbulence ahead for U.S. interest rates

NEW YORK, Sept 16 (Reuters) – Rising volatility in U.S.
interest rates is seen in coming months as traders expect the
Federal Reserve to move away from its near-zero interest rate
policy held for the past six years.

Several measures of interest rate volatility have climbed
from historic lows reached in recent weeks to levels not seen
since mid-summer with various indicators such as Merrill Lynch’s
benchmark for bond market volatility pointing to choppier days
ahead for U.S. interest rates and bond yields.

Sep 12, 2014

Options trading heats up on big bets U.S. rates are going up

NEW YORK, Sept 12 (Reuters) – Traders piled into U.S.
short-term interest rates options on Friday, adopting a bearish
posture on the view the Federal Reserve will signal next week
that interest rates will be notably higher by the end of next
year.

Block trades in put options on Eurodollar futures <0#ED:> on
the Chicago Mercantile Exchange suggested some traders believe
the Fed is ready to send its strongest signal yet the near-zero
interest rate era is ending, perhaps faster than anticipated.

Sep 12, 2014

Bets on hawkish Fed lift dollar, U.S. bond yields

NEW YORK (Reuters) – Bets the Federal Reserve will signal its intention to raise interest rates next week spurred the dollar toward a ninth straight week of gains on Friday and pushed short-dated U.S. Treasuries yields near their highest in over three years.

As the bond and currency markets made sizable moves this week, major stock markets worldwide pulled back from their recent peaks on profit-taking and jitters about the effect of higher U.S. borrowing costs on the global economy.

Sep 11, 2014

Sterling rebounds on Scotland poll results, stocks slip

NEW YORK (Reuters) – Sterling rose from 10-month lows on Thursday after a poll reduced some fears of Scotland leaving the United Kingdom, which briefly provided support for global equity prices before their gains faded.

A poll conducted by Survation on behalf of the Daily Record newspaper showed 53 percent of Scots intend to vote against independence while 47 percent intends to vote for. That contrasted with polls earlier this week showing more Scottish voters were leaning towards a secession.

Sep 10, 2014

U.S. stocks rise on Apple; rate hike views boost dollar

NEW YORK, Sept 10 (Reuters) – U.S. stocks rose on Wednesday,
helped by a rebound in Apple shares, while expectations for a
stronger economy and thus higher interest rates from the Federal
Reserve boosted the dollar to a six-year high against the yen.

Yields on U.S. Treasuries continued their advance higher,
with investors increasingly seeing momentum in the world’s
strongest economy prompting central bank action soon.

Sep 10, 2014

U.S. stocks fall on rate hike worries, dollar rises

NEW YORK (Reuters) – U.S. stock prices fell on Wednesday on growing bets the Federal Reserve may raise interest rates faster than previously thought, while anxiety over whether Scotland might break off from the United Kingdom unnerved investors in Europe, hurting sterling and boosting the dollar.

The greenback reached a six-month peak against the yen and short-dated U.S. Treasuries yields approached their highest in over three years following a study released on Monday from the San Francisco Federal Reserve that showed investors underestimate the pace of eventual rate hikes.

Sep 5, 2014

Dollar dips on weak U.S. jobs data, euro extends losing streak

NEW YORK, Sept 5 (Reuters) – The dollar slipped on Friday
after data showed U.S. employers added the fewest jobs in eight
months, eroding confidence in the economy and reviving bets that
the Federal Reserve might leave interest rates near zero for
longer than anticipated.

The U.S. Labor Department said nonfarm payrolls
grew by 142,000 last month, far below the 225,000 forecast by
analysts polled by Reuters.

Sep 5, 2014

Dollar retreats on disappointing U.S. jobs data

NEW YORK (Reuters) – The dollar fell on Friday after data showed U.S. employers added the fewest jobs in eight months, eroding some confidence in the domestic economy and reviving bets that the Federal Reserve might leave interest rates near zero for longer than anticipated.

The U.S. Labor Department said non-farm payrolls grew by 142,000 last month, far below the 225,000 increase among analysts polled by Reuters.

Sep 4, 2014

U.S. bond yields rise on bold ECB plan, upbeat data

NEW YORK, Sept 4 (Reuters) – U.S. Treasuries yields rose on
Thursday after the European Central Bank surprised investors
with a bold plan to help the sagging euro zone economy, while
stronger U.S. economic data supported views the Federal Reserve
may raise interest rates in mid-2015.

Amid the market sell-off, bargain-minded investors sat on
the sidelines ahead of Friday’s U.S. August payrolls data and
scheduled talks in Minsk aimed at ending a five-month war
between Ukraine and pro-Russian separatists.

Sep 3, 2014

Euro stabilizes on Ukraine ceasefire talk before ECB

NEW YORK, Sept 3 (Reuters) – The euro steadied against most
major currencies on Wednesday on speculation of a possible
ceasefire in eastern Ukraine, offering some relief to the euro
zone which has absorbed the brunt of the economic impact from
the conflict.

The common currency rose from its one-year low versus the
dollar after Ukraine’s President Petro Poroshenko said an
agreement was reached with his Russian counterpart Vladimir
Putin for a “permanent ceasefire” in eastern Ukraine’s Donbass
region.

    • About Richard

      "I am currently part of the U.S. Treasuries group based in New York, which covers the government debt market as well as interest rate derivatives. Previously, I was a specialist in housing and structured finance. Prior to joining the fixed income team, I had written extensively about the U.S. energy industry with focus on market and regulatory issues."
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