The Federal Reserve is maintaining deadly silence over the interest rates since long time. The upcoming employment report will affect treasury bonds market and therefore investors are asking the central bank about more details. The upcoming month would be very good for job gains, experts pointed out and this means 10 year bonds will give highest returns in the years.
Therefore investors are thinking that this is good reason for the Federal Reserve to increase rate by the end of current fiscal year. Fixed income trade head David Coard from New York based Williams Capital Group informed that the job conditions are improving and at one point they will so good that investors will question the logic behind the Fed’s decision. The firm works for institutional investor’s brokerage.
The present data is definitely worth noting. The treasury benchmark returns increased by 2.4872 percent. . This is just below the all time high of 2.4985 percent growth on June 11. The yield has increased by 0.55 percent. This is the fastest quarterly growth since 2013’s second quarter, the figures released by Bloomberg Bond Trader prices revealed.
United States government bonds were continuously losing since the end of 2013 fiscal and now the sector is picking up rapidly. The Bloomberg treasury index also revealed that the economy created around 2, 27,000 jobs each months since the slowdown period. The unemployment rate was therefore reduced to 5.5 percent, just one percent lower than official target of the central bank. The economy added around 2, 80,000 job in the month of May.