Treasury Yields Fall From Highest Since September Amid Fed Bets – Bloomberg 12-06-13

Salient to Investors:

Paul Montaquila at Bank of the West said the jobs number was expected but not a blockbuster number, and the steady diet of better numbers are not enough to give the market the clarity they want.

Sean Simko at SEI Investments said the market was pricing in a jobs number like we got, and does not change the picture of the Fed tapering.

34 percent of economists now believe the Fed will begin tapering this month.

Bill Gross at Pimco the pace of payroll growth in November signals at least 50 percent chance of Fed tapering this month as it is clear the Fed wants out. Gross said the Fed still has to be careful given growth at only about 2 percent.

Scott Minerd at Guggenheim Partners said the market is fairly priced and the Fed will be on hold at least until January to see more data – tapering will likely begin in March.

The 14-day relative strength index for the benchmark yield at 66 is approaching the 70 threshold that signals it may have risen too much and be about to change direction.

Read the full article at http://www.bloomberg.com/news/2013-12-06/treasuries-fall-as-gain-in-u-s-jobs-spurs-bets-on-stimulus-cuts.html

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