As low ready to drop price Traders are being

As low ready to drop the price? Traders are being watched

Stock market traders will be
follow the small flurry of economic
Reports on Thursday, but the focus
is the bond market.

Say “boring” about
bonds this week is impossible.
Caught between the opposing methods
US Federal Reserve policy and the European
the central bank, bond yields
I took the most dramatic twists and turns,
as investors began to revise
portfolios at the end of the month. I propose to adapt the translation of an article from CNBC portal.

While S P 500
for the first time crossed the point of 2000 dealers
debt bonds this week
They watched as their yield is creeping down,
especially lost securities of
Germany and Belgium, the Netherlands and
Finland – rotation was negative.
Thus, the German 10-year bonds fell
0.90% for the first time Wednesday, while
Italian and Spanish 10-year-old
bonds are traded at a 10-year
profitability. It was not so long ago, because
these peripheral Eurozone securities
It is seen as risky.

economic reports
informed on Thursday about the level of unemployment,
as well as the GDP for the second quarter. Information
on pending sales will
later. Meanwhile, the yield of lower
duration Treasury
Bonds got a little push
up on expectations that the Fed will be in
eventually raise rates in
next year. Latest news from
Europe on Wednesday, including the Minister
German Finance Volfganga Shoyble,
tried to crush rumors that the ECB will
take additional measures to
mitigation policy, and then yield
bonds became even lower. According to
traders concerns about Ukraine
and reports that Russia has sent troops
in this country, also slightly affected
movement in the market.

Europe’s economy will
in the spotlight again on Thursday when
Germany will report the inflation data.
Betting on the fact that the European economy
It weakens and there is a risk of deflation, rather
just give a negative mood

The yield on 30-year-olds
bonds fell to 3.10, touching
the lowest level since May 2013.
Long-term bonds now!

While the market
rampant speculation that the ECB may
to build a new facility
for banks next week, there
some evidence that it could
offer or QE QE
at the end of the year or next year. A
many investors believe that the ECB
it will be difficult to run a program on
the purchase of government bonds, similar to QE

"the trend now
to reduce inflation, which means
the potential to reduce yields
bonds. What is undervalued
paper and there is a real imbalance between supply
and suggestions. They are in short supply", – he said,
chief investment
strategist at Northern Trust Dzhim Makdonald.
He noted that the Bank of Japan is buying
government bonds at the time,
When the Fed buys Treasury bonds
by QE.

McDonald said that
the growth of the stock market and rising prices for
Bonds can coexist, and low
bond yields are not
warning. "We accept that
the bond market is currently
exposed to high liquidity, so
it really is a different story with
interest rates".

There are signs that the Fed
begins to move prices higher in the second
half of next year, but it is not
It means that it will be for reserves
painfully until the economy improves.

Traders will also be
to monitor the situation around
Ukraine on Thursday. Although McDonald
He said he did not see much impact
news on the market of Ukraine is now
time, but the stock is still not on the
a record high, when markets
very restless.

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