JW: Stocks dip, bond yields rise as Fed zest fades
Chevron climbed 2 percent. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 8.1 basis points to 2.173 percent.
The slide in benchmark 10-year yields as traders sold Treasurys extending Wednesday’s fall (http://www.marketwatch.com/story/treasury-yields-inch-higher-ahead-of-the-feds-statement-2015-10-28), which came after the Fed’s policy setting committee kept benchmark rates unchanged but surprised investors by hinting at the possibility that it could raise rates for the first time in almost a decade at its December meeting.
Spot gold XAU= edged up about 0.2 percent in Asian trade to $1,158.01 an ounce, after skidding more than 1 percent in the previous session in the wake of the Fed’s hawkish message. The yield on the two-year note TMUBMUSD02Y, +1.17% was up 1.7 basis points on the day to 0.724%. It ended down 0.55 percent on Thursday.
Consumer spending remained robust in the third quarter, the data showed.
In Europe the pan-European FTSEurofirst 300 index was down 0.2 percent at 1,481 points. Earlier in Asia, Japan’s Nikkei share average gained 0.2 percent to close at 18,935.71.
“The guts of the report were healthy, they still show strong underlying momentum in the economy and that puts a December rate hike firmly on the table”, Thomas Costerg, a U.S. economist at Standard Chartered Bank in New York, told Reuters.
In currencies, the dollar treaded water against the yen and euro before the Fed’s policy decision is known.
The ECB last week signalled its readiness to inject more stimulus to boost prices and the People’s Bank of China followed with its sixth interest rate cut in less than a year.
The dollar index.DXY, which tracks the USA unit against a basket of six of its major peers, was down about 0.2 percent at 97.594, but still not far from a 2-1/2-month peak of 97.818 scaled after the Fed’s message.
Crude oil futures were slightly higher one day after soaring more than 6 percent as the USA government reported an inventory build. United States crude rose 0.4 percent to $46.11 a barrel. Brent was down 48 cents to $48.57.
