- U.S. exchange-traded funds that invest in dividend-paying stocks have enjoyed a rush of inflows since the Federal Reserve kicked off its rate cutting cycle last month, though a jump in U.S. Treasury yields could slow the deluge of investor funds.
U.S. exchange-traded funds that invest in dividend-paying stocks have enjoyed a rush of inflows since the Federal Reserve kicked off its rate cutting cycle last month, though a jump in U.S. Treasury yields could slow the deluge of investor funds.
Speculators' net bearish bets on U.S. 10-year Treasury note
futures rose to a record high in the week ended on Oct. 1, according to Commodity Futures
Trading Commission data released on Friday.
U.S. 10-year Treasury yields climbed to the highest in nearly two months on Friday after a stronger-than-expected September employment report further weakened the odds of big rate cuts at the Federal Reserve's remaining two meetings this year. Nonfarm payrolls increased by 254,000 jobs in September, according to the Labor Department's Friday employment report.
Speculators' net bearish bets on U.S. 10-year Treasury note futures rose to their biggest on record in the week ended on Oct. 1, according to Commodity Futures Trading Commission data released on Friday. Net short bets on the benchmark 10-year note futures rose to 1,143,889 contracts from 1,025,278 a week earlier, the data showed.
U.S. Federal Reserve losses crossed the $200 billion point this week, according to data released on Thursday by the central bank. The Fed reported that as of Wednesday, the level of its so-called earnings remittance to the Treasury Department stood at negative $201.2 billion. The negative number is captured in an accounting measure the Fed calls a deferred asset.
* US services sector activity jumped to 1-1/2-year high. * Expectations for another 50 bps rate cut remain lower than a week ago. By Matt Tracy. U.S. Treasury yields climbed on Thursday after strong services sector data supported forecasts for a smaller interest rate cut at the Federal Reserve's November meeting than in September.
U.S. Treasury yields climbed on Thursday after strong services sector data supported forecasts for a smaller interest rate cut at the Fed's November meeting than in September.
* * Expectations for another 50 bps rate cut in November decrease. By Chuck Mikolajczak. Longer-dated U.S. Treasury yields rose on Wednesday after economic data pointed to a stable labor market while investors monitored escalating Middle East hostilities after Iran fired missiles against Israel.
Asia stocks sank on Wednesday, catching up with the sell-off on Wall Street after Iran's ballistic missile strike on Israel provoked fears of a wider regional conflict, while crude oil pushed higher on the risk of supply disruptions. Investors flocked to safer assets, pushing U.S. Treasury bond yields down in Asian time, while gold hovered near an all-time high.
* Iran fired ballistic missiles at Israel in retaliation for Hezbollah campaign. * JOLTS report shows job openings rebounded by 329,000 to 8.040 million. * Manufacturing PMI unchanged at 47.2, indicating sector contraction. By Chuck Mikolajczak.
MSCI's global equities index sank with Treasury yields as investors shunned riskier assets while oil futures rallied sharply on concerns about supply after Iran launched missiles at Israel on Tuesday. Iran fired a salvo of ballistic missiles at Israel in retaliation for Israel's campaign against Tehran's Hezbollah allies in Lebanon.
MSCI's global equities index was lower on Tuesday while the dollar rose and Treasury yields fell while oil futures rallied as investors reacted to the escalating Middle East conflict with fears that Iran was planning an attack on Israel.
* Iran preparing to launch ballistic missile attack against Israel, says senior White House official. * JOLTS report shows job openings rebounded by 329,000 to 8.040 million. * Manufacturing PMI unchanged at 47.2, indicating sector contraction. By Chuck Mikolajczak.
-MSCI's global equities index fell with Treasury yields on Tuesday as investors shied away from riskier assets while oil futures rallied on concerns about supply after Iran launched missiles at Israel. However Wall Street stocks ended above their session lows and Treasuries yields also pared declines on hopes that further escalation of the Middle East conflict was not imminent.
* U.S. two-year yield has largest quarterly fall since Jan 2020. * U.S. two-year yields rise to two-week peak. * U.S. 10-year yields post biggest quarterly decline since October. * Fed's Powell says no preset course for monetary policy. * U.S. rate futures price in higher odds of 25-bp cut in November. By Gertrude Chavez-Dreyfuss and Alden Bentley.
Toronto Dominion Bank (MLWIQXX) is set to pay over $20 million as part of a deal with U.S. authorities to resolve an investigation into a former employee's fraud trading tactics to manipulate the U.S. Treasuries market. Canada's second-largest bank entered into a three-year deferred prosecution agreement, the U.S. Department of Justice said on Monday in a filing with the New Jersey federal court.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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