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http://www.businessinsider.com/economic-story-may-be-about-to-change-2014-1
The 10-year Treasury yield closed Monday at 2.82%, below the 2.88% level where it closed on December 18, when the Federal Reserve announced it would begin tapering down its quantitative easing program.
The yield on the 10-year Treasury note broke through to a new multi-year high of 3.03% on the final day of 2013, following the Federal Reserve's December 18 decision to begin tapering down its bond buying program known as quantitative easing and the attendant sell-off in the U.S. government bond market.
Friday's release of the December jobs report, however, sent yields tumbling 10 basis points in a single day, and they are now back below where they were when the tapering-induced sell-off began.
Last week, before the jobs report, we highlighted Citi's Economic Surprise Index, which stood at its highest level in nearly two years headed into the release. The surprise index measures how much better or worse economic data progress relative to the expectations of market economists, so a high number means the data are blowing expectations out of the water.
That has been the backdrop for the last few months. Economic data releases have been doing just that, especially given how low expectations for near-term economic improvement were following the government shutdown that spanned the first two weeks of October.
Read more: http://www.businessinsider.com/economic-story-may-be-about-to-change-2014-1#ixzz2qNQOwg6b
The 10-year Treasury yield closed Monday at 2.82%, below the 2.88% level where it closed on December 18, when the Federal Reserve announced it would begin tapering down its quantitative easing program.
The yield on the 10-year Treasury note broke through to a new multi-year high of 3.03% on the final day of 2013, following the Federal Reserve's December 18 decision to begin tapering down its bond buying program known as quantitative easing and the attendant sell-off in the U.S. government bond market.
Friday's release of the December jobs report, however, sent yields tumbling 10 basis points in a single day, and they are now back below where they were when the tapering-induced sell-off began.
Last week, before the jobs report, we highlighted Citi's Economic Surprise Index, which stood at its highest level in nearly two years headed into the release. The surprise index measures how much better or worse economic data progress relative to the expectations of market economists, so a high number means the data are blowing expectations out of the water.
That has been the backdrop for the last few months. Economic data releases have been doing just that, especially given how low expectations for near-term economic improvement were following the government shutdown that spanned the first two weeks of October.
Read more: http://www.businessinsider.com/economic-story-may-be-about-to-change-2014-1#ixzz2qNQOwg6b
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