RATE FUTURES REPORT: Yields Seen To Fall On Anemic Job Gains
–Reaction perhaps overdone because of illiquid holiday market
–Disappointing jobs report lifts Treasury futures to 3 1/2-week highs
–Hope fade for late 2013-early 2014 funds rate hike
CHICAGO (Dow Jones)–Data revealing much slower job growth in the U.S. ignited a strong rally for most U.S. interest rate futures contracts on Friday, but a lack of liquidity during the holiday-shortened session may have exaggerated the market’s move.
Higher prices reflect expectations for lower rates. Friday’s action amounted to a yield curve flattening, as investors predicted that longer-term rates would fall and shorter-term rates would hold near record low levels.
In federal-funds …
Category: Market Feeds
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