Econ--"Basis Points" By John M. Berry, The Post
washingtonpost.com
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Edited for ease of reading
>>> Sunday , July 23, 2000 ; H02
Federal Reserve Chairman Alan Greenspan, who testified before the Senate Banking Committee last week, didn't rule out a further increase in overnight rates at the Fed's next policymaking session, on Aug. 22, but he gave plenty of reasons to believe that U.S. economic growth has slowed to a more sustainable level.
Most analysts, however, agreed that it would take some pretty bad data in coming weeks to trigger a rate hike. The first key number comes Thursday with the report on changes in the employment cost index for the second quarter. A large increase would be worrisome for officials. Advance figures for second-quarter gross domestic product will come Friday, and the most important report of all, the employment report for July, a week later.
Meanwhile, with Greenspan's testimony clearly more dovish on the outlook than most investors expected, bonds rallied, with yields on several maturities dropping nearly 10 basis points for the week.
Tomorrow, Treasury will sell $8.5 billion in three-month bills and $7.5 billion in six-month bills, followed Wednesday by $10 billion in two-year notes. In when-issued trading Friday, the bills yielded 6.17 percent and 6.28 percent, respectively, and the notes 6.29 percent.
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