Econ--"Basis Points" by John M. Berry, The Post, August 6, 2000...
washingtonpost.com
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Edited for emphasis and ease of reading.
>>> Basis Points
By John M. Berry
Sunday , August 6, 2000 ; H02
The bond market had a good week that ended on an upbeat note when the Labor Department reported that the rise in private-sector payrolls was about half what many analysts had expected.
For the Fed watchers who already thought the central bank would stand pat on interest rates at its Aug. 12 meeting, the data reinforced that belief.
For those who had been thinking there wasn't enough solid evidence of slower growth to avert another hike, the figures caused a number of observers to change their mind.
One KEY to the meeting is that, despite having a jobless rate at or close to 4 percent for most of the last year, there is still NO indication that wages are rising fast enough to create an inflation problem. That gives the Fed leeway to wait for more evidence on the course of the economy before moving again.
Tomorrow, Treasury will sell $9.5 billion in three-month bills and $8.5 billion in six-month bills. Its quarterly re-funding starts on Tuesday with the sale of $10 billion in five-year notes, followed Wednesday by $10 billion in 10-year notes and Thursday by $5 billion in 30-year bonds. In when-issued trading Friday, the bills yielded 6.25 percent and 6.33 percent, respectively, the five-year notes 6.01 percent, the 10-year notes 5.79 percent and the bond 5.57 percent.
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