Treasuries rally as market anticipates Fed pivot

Reuters ^ | 01/09/2023 | Herbert Lash

[millenial4freedom]

Treasury prices rallied further on Monday on expectations of a halt to rising interest rates, although the market faces a hawkish U.S. Federal Reserve that aims to see inflation truly slowing before it can pivot. Fed Chair Jerome Powell could insist when he speaks on Tuesday that more time is needed to show inflation is under control. But consumer price data on Thursday could bolster the market's view that inflation is on track towards the Fed's 2% target.

[Yo-Yo]

Mid-day the S&P and NASDAQ were up approximately 1.45%. Now they’re hovering around zero 50 minutes before market close.

[CatOwner]

Manipulation, manipulation, manipulation, manipulation, manipulation ...

[Huskrrrr]

Don’t count your chickens just yet.

[cgbg]

There is zero evidence the Fed is changing course.

They have said they are not going to do so.

This is just talkers talking trash.

[JesusIsLord]

10 Yr Treasury at 3:30 EST >>> 3.53%, which is down -0.033%

[Tell It Right]

There is zero evidence the Fed is changing course. They have said they are not going to do so. This is just talkers talking trash.

I believe it's correct that the Fed has given no indication that they'll change course. However, an argument could be made that with long term treasury funds being way down from their ATH's it's a good buying opportunity. The PRULX fund is down 43.9% from the high it had on Oct 9, 2020 (even after accounting for dividends).

[familyop]

Not yet. Not even close. Big ticket markets (especially real estate) are raring to take off like rockets with foreign interests dying to continue sucking the life out of consumers and production.

[M-cubed]

But consumer price data on Thursday could bolster the market's view that inflation is on track towards the Fed's 2% target.<<

Yeah ... just give it 5-6 years to where inflation has doubled the price of everything and we'll be back to normal.../s

[kabar]

Wall Street wants an end to higher interest rates. Bad for stocks and pension funds.

[Mariner]

If the Fed does not have the will to end this inflation here, now, we are doomed.

Most surely doomed.

[Rdct29]

I just bought a dozen eggs for $8.50 at the local grocery store. The fed can pivot all they want but the price of necessities are still too high.

[ncfool]

Anybody remember interest rates under Jimmy Crickits? This will be worse as we have Trillions and trillions more debt.
I don’t see this ending well for America.

[ncfool]

To: millenial4freedom
10 Yr Treasury at 3:30 EST >>> 3.53%, which is down -0.033%

BUYING 10 YEAR TREASURY BILLS IS A MISTAKE. 1 YEAR is 4.50%
Buy ladders of 30 day short terms which are averaging 4.75% it will continue to go up. Next FED meeting February 1 will be another raise.

[Blennos]

Good advice, especially to those of us who invest for yield/cash flow.

[JesusIsLord]

Buy ladders of 30 day short terms which are averaging 4.75% it will continue to go up. Next FED meeting February 1 will be another raise.

Good advice! I wish I had a pile of cash to follow it. Unfortunately, some of us are fully invested and moving money out of long term investments would be unwise.