Tuesday, June 27, 2107 End of Trading Day

Minneapolis Fed's Kashkari said raising rates in the face of weak inflation data would be a mistake.

Bond prices went lower throughout the day following Mario Draghi's comments about raising interest rates and adjusting monetary policy pending inflation data in the months to come.  

Debt traders took note amidst a large Treasury auction of $34 billion in 5-year notes. The 10-year yield jumped to 2.21% and mortgages didn't fare any better, closing down 27 bps in the afternoon.

As markets were closing, news broke from Washington that the GOP is going to delay the vote on the health-care bill until after the July 4thholiday. Now investors may go into the long weekend wondering how to manage their risk.

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