Bonds and Commodities Rise After Fed Minutes

Government bonds rallied with commodities and the dollar fell on bets the largest economies will keep interest rates at record lows for longer. Standard & Poor’s 500 Index (BCOM) futures declined after U.S. equities jumped the most in a year yesterday.

The Treasury 10-year note yield dropped to 2.31 percent at 8:41 a.m. New York time and touched the lowest in more than a year. Rates in European countries including Germany, France and Spain fell to records, the dollar weakened against most of its 31 major peers and the Bloomberg Commodity Index rose 0.4 percent. S&P 500 futures (SPX) fell 0.2 percent, while the MSCI All-Country World Index climbed 0.3 percent.

Federal Reserve policy makers fueled bets they’ll hold off raising rates after saying in minutes of their last meeting that slowing global growth and the stronger greenback posed potential risks to the U.S. outlook. European Central Bank President Mario Draghi may be pressured at International Monetary Fund meetings in Washington this week to do more to revive the recovery. The Hong Kong government suspended plans to hold formal talks with pro-democracy protesters tomorrow after leaders of the movement called for more demonstrations.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza