Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Actual left/right wing discussion -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (2566)	10/11/2006 2:59:33 PM
From: one_less	Respond to of 10087

Bush Rally over? =================== Treasurys turn lower after FOMC minutes Marketwatch - October 11, 2006 2:38 PM ET NEW YORK (MarketWatch) - Treasury prices turned lower Wednesday afternoon, sending yields higher, after the meeting minutes from the most recent Federal Open Market Committee meeting showed that U.S. central bankers remain concerned about the prospect of inflation. Demand for bonds was reinforced by news that North Korea warned that a second possible nuclear test would hinge on U.S. behavior, dealers said. Prices were higher throughout most of the session, but turned decisively lower after the meeting notes were released. The benchmark 10-year-yield note last was down 9/32 at 100-21/32 with a yield $TNX of 4.790%. Prices and yields move in opposite directions. The 30-year long bond fell 11/32 to 93-20/32 to yield $TYX 4.912%. Among shorter-term notes, the 2-year instrument was off 2/32 at 99-18/32 with a yield of 4.856%. The Fed - at its most recent meeting last month - paused in its rate hiking cycle for the second time in a row. Previously, the Fed had lifted rates consistently for 17 times in a row since June, 2004. The key overnight rate remains at 5.25%. The minutes from the meeting showed that the central bankers believed that supportive economic data made the decision to hold rates steady in September an easier decision than the "close call" in August. Members of the monetary policy group noted that appreciable declines in energy prices, some softer indicators of economic activity, and slightly lower readings on core inflation - pointed to a modestly better inflation outlook. "That [conclusion] made the policy decision today somewhat less difficult than it was in August, when it was seen as a particularly close call," the minutes said. For the second straight meeting, Jeffrey Lacker of the Richmond Fed dissented in favor of a rate hike. "Those people who were hoping the Fed would lower rates this year... well, a damper has been put on those hopes," said Andrew Richman, managing director of personal asset management at SunTrust. In recent sessions, Treasury prices have been under pressure due to investor perception that upcoming government data will show the U.S. economy is more resilient than many in the financial markets have believed of late. During the third quarter the Treasury market staged a surprisingly durable rally due to widespread belief that the economy had weakened sufficiently to justify an end to the Federal Reserve's rate-tightening cycle. However, that view has been revisited in October.