{"id":114954,"date":"2020-11-18T23:38:00","date_gmt":"2020-11-18T20:38:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bond-traders-talk-up-possibility-of-december-fed-twist\/"},"modified":"2020-11-18T23:38:00","modified_gmt":"2020-11-18T20:38:00","slug":"bond-traders-talk-up-possibility-of-december-fed-twist","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bond-traders-talk-up-possibility-of-december-fed-twist\/","title":{"rendered":"#\n  Bond traders talk up possibility of December Fed \u2018twist\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a261f069ed1e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a261f069ed1e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bond-traders-talk-up-possibility-of-december-fed-twist\/#Sunny_Oh\" >Sunny Oh<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Bond traders talk up possibility of December Fed \u2018twist\u2019<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000072632\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:66.171875%;\" data-mobile-ratio=\"66.171875%\" data-layout-ratio=\"66.171875%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-257885?width=140&amp;size=1.511216056670602 140w,\nhttps:\/\/images.mktw.net\/im-257885?width=540&amp;size=1.511216056670602 540w,\nhttps:\/\/images.mktw.net\/im-257885?width=620&amp;size=1.511216056670602 620w,\nhttps:\/\/images.mktw.net\/im-257885?width=700&amp;size=1.511216056670602 700w,\nhttps:\/\/images.mktw.net\/im-257885?width=860&amp;size=1.511216056670602 860w,\nhttps:\/\/images.mktw.net\/im-257885?width=1260&amp;size=1.511216056670602 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-257885?width=620&amp;size=1.511216056670602\" data-enlarge=\"https:\/\/images.mktw.net\/im-257885?width=1260&amp;size=1.511216056670602\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            karen bleier\/Agence France-Presse\/Getty Images<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       Investors are preparing for the Federal Reserve to expand its purchases of longer-dated Treasury bonds.<\/p>\n<p> A few market participants have flagged data signaling a slowdown in economic activity and a worsening COVID-19 pandemic as potential triggers for the Fed to \u201ctwist\u201d its bond buying, similar to how the central bank in 2011 bought more longer-dated Treasurys but sold shorter-dated bonds to offer incremental support to the economy.<\/p>\n<div class=\"paywall\">\n       \u201cMy feeling is they\u2019re leaning towards doing more,\u201d said Gregory Faranello, head of U.S. rates at AmeriVet Securities, but he added that the central bank would need to see a further deterioration in data before it put a December move on the table.<\/p>\n<p>If the Fed acts, analysts say policy makers will either expand the size of its quantitative easing program or shift the weight of its $80 billion of monthly bond-buying towards Treasurys with extended maturities.<\/p>\n<p>Expectations that the central bank will swing into action have helped deflate the latest bond-market selloff spurred by a raft of promising vaccine developments. After the 10-year Treasury note yield<br \/>\n        TMUBMUSD10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">0.874%<\/bg-quote><br \/>\n       briefly threatened to push beyond 1%, the benchmark maturity has since come down to 0.89%. Yields and bond prices move in opposite directions.<\/p>\n<p>\u201cNot acting in December will be a policy error in my mind,\u201d said Ed Al-Hussainy, senior global rates strategist at Columbia Threadneedle, in emailed comments.  <\/p>\n<p>With Washington struggling to pass a new coronavirus aid relief package, further gains in the economy may be hard to achieve, he said.<\/p>\n<p>\u201cIt\u2019s an open question whether we can sustain these [yield] levels with the negative data flow and no stimulus into year-end,\u201d said Al-Hussainy.<\/p>\n<p>After retail sales rose 0.3% in October, the slowest pace of growth in half a year, Atlanta Fed President Raphael Bostic cautioned signs of a less enthusiastic consumer ahead of holiday season was something the central bank would monitor.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Bond bulls have looked for incipient signs of weakness in the U.S. consumer, the bulwark of the economy, as new COVID-19 cases hit records across dozens of states and additional federal unemployment benefit programs wind down at the end of the year.<\/p>\n<p>Some have pointed to a recent dip in indexes tracking credit card spending compiled by JP Morgan as an early bellwether of slowing consumer spending. <\/p>\n<p>But other investors say not all high-frequency economic indicators suggest the U.S. recovery has reached an inflection point.<\/p>\n<p>In fact, the resilience of household spending so far has come to a surprise to some money managers who expected Americans to tighten their purse strings as stimulus payments waned.<\/p>\n<p>\u201cIt doesn\u2019t seem like consumers are really slowing down,\u201d said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, in an interview. \u201cThere\u2019s a shift in what they\u2019re buying but there\u2019s still a lot of spending.\u201d<\/p>\n<p>Some market watchers have expected spending to hold up fairly well into the new year, citing an inflated savings rate courtesy of an earlier round of aid from Washington and spending that was forgone due to the pandemic.<\/p>\n<p>Gokhman expected the Fed to stand pat even if it had talked up the possibility of sn<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ing up more longer-dated bonds in previous Fed minutes.<\/p>\n<p>In other markets, U.S. equities were tilted lower on Wednesday. The S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.77%<\/bg-quote><br \/>\n       and Dow<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"negative\">-0.80%<\/bg-quote><br \/>\n       were both down, but still on track for weekly gains.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Sunny Oh\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Sunny_Oh\"><\/span>Sunny Oh<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D11BB8FF49A5%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bond traders talk up possibility of December Fed \u2018twist\u2019 &#8221; karen bleier\/Agence France-Presse\/Getty Images Investors are preparing for the Federal Reserve to expand its purchases of longer-dated Treasury bonds. A few market participants have flagged data signaling a slowdown in economic activity and a worsening COVID-19 pandemic as potential triggers for the Fed to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":114955,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-114954","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/114954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=114954"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/114954\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/114955"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=114954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=114954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=114954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}