Treasuries Close Roughly Flat For 2nd Straight Day

By | September 15, 2017

Treasuries revealed a lack of direction throughout the trading session on Friday before closing approximately flat for the 2nd straight day.

Bond rates invested the day bouncing back and forth throughout the unchanged line. Consequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 2.202 percent.

The choppy trading came as traders largely shrugged off some disappointing financial reports, as the information was affected by Hurricane Harvey.

The Commerce Department released a report revealing retail sales dipped by 0.2 percent in August after rising by a downwardly revised 0.3 percent in July.

Economic experts had expected retail sales to inch up by 0.1 percent compared with the 0.6 percent increase initially reported for the previous month.

The unanticipated decrease in retail sales largely reflected a sharp drop in sales by automobile and parts dealers, which plunged by 1.6 percent in August after coming in unchanged in July.

Excluding the depression in auto sales, retail sales rose by 0.2 percent in August after climbing up by 0.4 percent in July. Ex-auto sales had been anticipated to increase by 0.5 percent.

A separate report from the Federal Reserve suddenly showed a significant reduction in industrial production in August.

The report stated commercial production dropped by 0.9 percent in August after climbing by an upwardly revised 0.4 percent in July. Financial experts had anticipated production to inch up by 0.1 percent.

The Fed stated Cyclone Harvey is approximated to have reduced the rate of change in overall output by roughly three-quarters of a percentage point.

Additionally, a report from the University of Michigan showed concerns about the impact of Hurricanes Harvey and Irma have actually weighed on customer belief in September.

Traders may have hesitated to make significant moves ahead of the Federal Reserve’s financial policy announcement next Wednesday.

While the Fed is extensively anticipated to leave rate of interest the same, traders will be trying to find ideas on the outlook for monetary policy.

House information may also bring in attention next week, as reports on homebuilder confidence, housing starts, and existing house sales are all due to be launched.

The product has been provided by InstaForex Company – www.instaforex.com

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