U.S. Treasuries Rise after Fed’s Fischer’s Comments

Treasury note futures rose as comments from Federal Reserve Vice Chairman Stanley Fischer fueled speculation the central bank may push back the timing for raising interest rates.

Money-market derivatives signal that the central bank won’t increase its almost-zero policy rate target until the fourth quarter of 2015. While the Fed is set to end its bond-buying this month, the prospect of monetary tightening has been tempered by concern regarding flagging global economic growth.

“Most of the trade overnight has been driven by three-factors, a pretty dour round of International Monetary Fund meetings in Washington this weekend, accented we think by Fed Vice Chair Stanley Fischer’s comments Saturday afternoon,” said John Brady, managing director for global futures and options at RJ O’Brien & Associates LLC in Chicago. “Considering Tokyo was closed last night, overnight volumes in Treasury futures was quite heavy.”

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.