Treasuries fall on rising inflation concerns
10yr.top.pngclick on the chart to see other bond market data. By Laurie Segall, staff reporterApril 6, 2011: 6:39 PM ET
NEW YORK (CNNMoney) -- Treasury prices fell Wednesday as concerns about rising inflation and the outlook for interest rates in Europe and the United States took center stage.
On Thursday, the European Central Bank is expected to raise interest rates -- a move aimed at battling The ECB's potential move would come just days after the People's Bank of China just hiked interest rates for the fourth in time in six months.
The interest rate hikes leave the Federal Reserve as the odd man out. The central bank has kept interest rates near 0% since December 2008 and that's starting to make investors nervous that inflationary pressures may hit sooner rather than later.
CNNMoney survey: Where the markets are headed
"There's some concern about inflation," Williams Capital Group fixed income analyst David Coard said. He said there's also some renewed talk about how much the Fed will stick to its guns when it comes to ending QE2.
QE2 or "quantitative easing" program is the central bank's program aimed at spurring economic growth by flooding the system with liquidity.
On Tuesday investors mulled over the outlook for interest rates after minutes released from the Federal Reserve showed Tuesday that central bank officials are at odds about rising prices.
Click HERE for article source
No comments:
Post a Comment