Yield curve hits flattest since 2007 after dovish Federal Reserve GlobeInvestor
. The three-month and 10-year spread is the Fed’s preferred measure of the Treasury yield curve as it shows the strongest historical correlation between curve inversion and forthcoming recession.
In a major shift, the U.S. central bank also expects to raise borrowing costs only once more through 2021, and no longer anticipates the need to guard against inflation with restrictive monetary policy. It also said it would halt the steady decline of its balance sheet in September. “The Fed has doubled down on its dovish tilt,” said Matt Freund, head of fixed-income strategies at Calamos Investments. “The global economy is clearly softening and the Fed is looking at liquidity conditions.”
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Indian court acquits four men accused in 2007 train bombingSixty-eight people, mostly Pakistanis, were killed in the attack on a train near the city of Panipat
Read more »
Spotify wants all the benefits of a free app without being free, Apple saysSpotify, launched a year after Apple unveiled its first iPhone in 2007, said on Wednesday the company unfairly limits rivals to its own music streaming service
Read more »
Nine banks win dismissal of Canadian rate-rigging lawsuit in U.S.The proposed class action concerned the alleged suppression from August 2007 to June 2014 of the Canadian Dealer Offered Rate
Read more »
Palestinians are rising up against Hamas, and getting swiftly smacked downHamas, recognized by Canada as a terrorist group, has controlled Gaza since 2007 with devastating economic consequences for the enclave’s two million people
Read more »
Starved for yield? U.S. retail investors likely to seek Treasuries again this yearStarved for yield? U.S. retail investors likely to seek Treasuries again this year GlobeInvestor
Read more »
Rate cut seen on horizon as Canadian bonds due in more than a decade yield less than cash1.67% is the market telling you the next interest rate move will be down
Read more »
Federal Reserve likely to disappoint policy doves: strategistExpectations for interest-rate levels between policymakers and markets are extraordinarily wide.
Read more »
Federal Reserve’s economic outlook and balance-sheet plan in the spotlightThe U.S. central bank since early this year has signalled a ‘patient’ approach to increasing borrowing costs, drawing an end to a gradual, three-year cycle of monetary tightening marked by nine rate hikes
Read more »