Fed's Clarida: Surprised by the magnitude of bond yield drop
FILE PHOTO: Federal Reserve Vice Chair Richard Clarida reacts as he holds his phone during the three-day "Challenges for Monetary Policy" conference in Jackson Hole, Wyoming, U.S., August 23, 2019. REUTERS/Jonathan Crosby
(Reuters) - U.S. Federal Reserve Vice Chair Richard Clarida on Wednesday said he has been surprised by the magnitude of the drop in global government bond yields, but he is not ready to see that as a market signal that the economy faces "secular stagnation."
Clarida, speaking at an online event hosted by the Peterson Institute for International Economics, said several factors may be behind the move - including fears the resurgence of the coronavirus could hurt economic growth - but he is still analyzing the drop. Nonetheless, he said he did not think the fall has been driven by a drop in inflation expectations.
The benchmark 10-year U.S. Treasury note yield has tumbled by more than half a percentage point since late March and was near a six-month low below 1.15% before Clarida's remarks. It rose above 1.20% following his comments.
(Reporting By Dan Burns)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- US 7y Notes Draw 4.716%, Matches Pre-sale When-issued Yield
- Wall Street stocks fall as weak GDP growth spreads rate-cut gloom
- Cigna to offer Humira rivals with $0 copay at specialty pharmacy
Create E-mail Alert Related Categories
Fed, General News, ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!