Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

U.S. Government Bonds Rise on Low Inflation Data

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/11/2019 | 11:56am EST

By Daniel Kruger

U.S. government-bond prices rose Friday after government data showed that consumer prices declined in December.

The yield on the benchmark 10-year Treasury note fell to a recent 2.697%, according to Tradeweb, from 2.731% Thursday.

Yields, which fall when prices rise, declined after the Labor Department said Friday that consumer prices contracted by 0.1% from the previous month. Excluding food and energy, which are more volatile, prices rose 0.2%. Both figures matched the predictions of economists in a Wall Street Journal survey.

The recent decline in the price of oil has played an important role in containing inflation. Friday's report showed an index of energy prices fell 3.5% in December, led by a seasonally adjusted 7.5% decline in gasoline costs. Gas prices for U.S. drivers were $2.37 a gallon on average in December, down 28 cents, or nearly 11%, from $2.65 in November, according to the U.S. Energy Information Administration. Retail gasoline prices have dropped from a nearly four-year high of $2.90 a gallon in May.

The data suggests that rising inflation isn't a threat to growth and could give Federal Reserve officials the latitude to pause from their recent program of raising interest rates once per quarter and instead hold them at their current range of 2.25% to 2.50%, analysts said.

Fed-funds futures, which investors use to bet on the direction of central bank policy, show a 19% probability that officials will raise interest rates by the end of the year, according to CME Group data. That's down from 56% a month ago. Investors see a 14% chance that officials reduce rates by the end of the year.

"Once the pause starts, it's just going to continue," said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management. "There are too many questions about the global economy that need to be resolved," which will prevent the Fed from raising rates, he said.

The Fed will likely keep interest rates at current levels, Mr. Heppenstall said.

Write to Daniel Kruger at Daniel.Kruger@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
11:09pOil rises to 2019 highs on strong China demand despite economic slowdown
RE
11:09pOil rises to 2019 highs on strong China demand despite economic slowdown
RE
11:09pNSW DEPARTMENT OF PRIMARY INDUSTRIES : Ticking the boxes keeps cattle tick-free
PU
11:07pCHINA HAS AMPLE ROOM FOR MACRO POLICY SUPPORT : stats bureau chief
RE
11:06pChina has ample room for macro policy support - statistics bureau chief
RE
10:55pChina's economy cools in fourth quarter, 2018 growth at 28-year low
RE
10:19pOil firms as China's slowdown not as steep as some expected
RE
10:19pAVA AGRI FOOD & VETERINARY AUTHORITY OF SINGAPOR : Recall of “Da Ji Da Li” Peanut Puff
PU
10:18pChina's December property investment slows in sign of fatigue for key GDP driver
RE
10:18pChina's 2018 oil refinery output, December gas production hit records
RE
Latest news "Economy & Forex"
Advertisement