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Bond Market Update

  • The Market at 15:23 ET

    10-Year: -14/32…1.62…EUR/USD: 1.1195USD/JPY: 101.80

    Treasury Market Stands Its Ground

    • St. Louis Fed President Bullard said this morning that the Fed could raise rates in 2016, but he emphasized that he will be using the two-regime framework that he laid out in June until evidence suggests that the regime has changed. Until then, he sees no urgency to raise rates. Says real yields on long-term Treasuries are obviously too low
    • Q2 GDP -- Second Estimate: Actual 1.1%, consensus 1.1%, Preliminary estimate 1.2%
    • Q2 GDP Deflator -- Second Estimate: Actual 2.3%, consensus 2.2%, Preliminary estimate 2.2%
    • July International Trade in Goods: Actual -$59.3 bln, Prior -$64.5 bln
    • Cleveland Fed President Loretta Mester (FOMC voter, hawk) on CNBC: thinks 3% growth is possible in H2 2016;
    • Atlanta Fed President Lockhart (non-FOMC voter, moderate): Says two rate hikes are a possibility in 2016
    • August Michigan Sentiment -- Final: Actual 89.8, consensus 90.6, Prior 90.4
    • Fed Chair Yellen - FOMC voter: Rate hike case has strengthened in recent months, solid growth in household spending
    • Fed Vice Chair Fischer (FOMC voter) speaking on CNBC now
    • $/Yen on highs, having failed to break multi-year low (+0.60% to 101.19)
    • Fed Governor Jerome Powell (FOMC voter): Fed should be patient with rate hikes; U.S. economy on solid footing despite H1 slowdown; believes gradual tightening is appropriate