Kansas-City-Fed-President-Esther-George

Aust bonds sag on global equity rally

The Australian bond market has been pushed lower by a global sharemarket recovery.

A strong performance from Chinese stocks improved international sentiment, sending all major northern hemisphere bourses and commodities higher.

This reversed gains made in bond prices overnight following a softening US rate rise stance from a top Federal Reserve official.

Kansas City Fed President Esther George cautiously said that the timing of any rate rise should take into account potential market impacts, Westpac strategist Imre Speizer said.

“Fed fund futures are currently pricing around a 30 per cent chance of a rate hike in September, 100 per cent priced not until April,” he said

At 0830 AEST on Friday, the September 2015 10-year bond futures contract was trading at 97.235 (implying a yield of 2.765 per cent), down from 97.260 (2.740 per cent) on Thursday.

The September 2015 three-year bond futures contract was at 98.180 (1.820 per cent), down from 98.210 (1.790 per cent).

KEY MOVEMENTS:

Government bond yields:


  • CGS 5.5pct Jan 2018, 1.767pct, unchanged from Thursday

  • CGS 4.25pct April 2026, 2.783pct, unchanged

Sydney Futures Exchange prices:


  • September 2015 bill futures, 97.900, from 97.910

  • December 2015 bill futures, 98.040, from 98.060,

(*Closes taken at 1630 AEST previous local session)

Source: IRESS

Aust bonds sag on global equity rally

The Australian bond market has been pushed lower by a global sharemarket recovery.

A strong performance from Chinese stocks improved international sentiment, sending all major northern hemisphere bourses and commodities higher.

This reversed gains made in bond prices overnight following a softening US rate rise stance from a top Federal Reserve official.

Kansas City Fed President Esther George cautiously said that the timing of any rate rise should take into account potential market impacts, Westpac strategist Imre Speizer said.

“Fed fund futures are currently pricing around a 30 per cent chance of a rate hike in September, 100 per cent priced not until April,” he said

At 0830 AEST on Friday, the September 2015 10-year bond futures contract was trading at 97.235 (implying a yield of 2.765 per cent), down from 97.260 (2.740 per cent) on Thursday.

The September 2015 three-year bond futures contract was at 98.180 (1.820 per cent), down from 98.210 (1.790 per cent).

KEY MOVEMENTS:

Government bond yields:

* CGS 5.5pct Jan 2018, 1.767pct, unchanged from Thursday

* CGS 4.25pct April 2026, 2.783pct, unchanged

Sydney Futures Exchange prices:

* September 2015 bill futures, 97.900, from 97.910

* December 2015 bill futures, 98.040, from 98.060,

(*Closes taken at 1630 AEST previous local session)

Source: IRESS

Fed's George: 'Wait and See' on Data Before Rate Hike

In an interview with FOX Business Network’s Peter Barnes, Kansas City Federal Reserve President Esther George discussed how China and market volatility are affecting her outlook on raising rates in September. http://q.gs/8fnqO

Fed's George: 'Wait and See' on Data Before Rate Hike

In an interview with FOX Business Network’s Peter Barnes, Kansas City Federal Reserve President Esther George discussed how China and market volatility are affecting her outlook on raising rates in September.

Fed's George says recent volatility hasn't changed her views on economy-Bloomberg TV

WASHINGTON, Aug 27 (Reuters) - The U.S. Federal Reserve has time before its September meeting to gauge what recent financial volatility might mean for the U.S. economy, but so far the economy still appears to be on solid ground, a regional Fed bank chief said.

“We have to be careful … trying to decide today how we might react to” recent financial market volatility, Kansas City Federal Reserve Bank President Esther George told Bloomberg TV in an interview that aired on Thursday.

“I think that takes more time and we have time. We have until our September meeting to see how things look then.”

“At this point, for me, I have not seen something that would change my own sense of how the economy is doing,” added George, who has been calling for the central bank to raise rates.

(Reporting by Timothy Ahmann; Editing by Chizu Nomiyama)

Fed?s Esther George Want?s to 'Wait-and-See' Before First Rate Hike

In an interview with FOX Business Network?s Peter Barnes, Kansas City Federal Reserve President Esther George discussed how China and market volatility are affecting her outlook on raising rates in September.

?Anytime that you get new information in between meetings, it can complicate decision making. So certainly you have to look at the changes, the volatility we saw in the market, what new information we may have about China and take that in. The question is whether it fundamentally changes the outlook of the U.S. economy,? she said.

George said she has a wait-and-see approach on data before suggesting a rate hike.

?Given what we?ve seen recently, I think we just have to wait and see. I don?t want to take too much signal from something that could turn out to be noise. I don?t want to overreact to short-term data that may not in the long term really turn out to be significant for that kind of a decision,? she said.

She also said the U.S. economy is getting back on track after a slow start to the year.

?So after a disappointing first quarter, it looks like we?re back on track. We?ll probably do another two percent growth. The labor markets continue to show great health, I think. We?ve had over 200,000 jobs per month for 15 of the last 17 months. That is great sign, I think. And so as consumers spend, as they gain more confidence, as low oil prices seed through to them, my outlook is for continued growth. And I think in that context, it?s time for us to talk about normalization,? she said.

George also said continuous low rates can create instability in the markets.

?Well, when rates are this low for a long period of time, you create certain incentive. And there can be mispricing of risk. There is certainly a desire to reach for yield. And if you think about the kind of accommodation, the quantitative easing was focused on asset values at the time. And so as we?ve seen housing values recover and the stock market that has grown, once you begin to talk about raising rates, you might expect volatility at some time,? she said.

Wall Street extends gains, helped by GDP data

While strong data points to increased chances of an interest rate hike in September, some investors said the recent volatility in markets triggered by fears of slowing growth in China could force the U.S. Federal Reserve to hold back on a rate increase next month. A rate hike could put a stop to easy money that has helped fuel global markets in the past few years. Kansas City Federal Reserve President Esther George, who has been arguing for a near-term U.S. rate hike, said the Fed should now take a “wait and see” approach to hiking rates due to market volatility and China’s economic slowdown. http://q.gs/8fmms

3Novices:Fed's George softens rate hike stance

3Novices:Fed’s George softens rate hike stance

Kansas City Federal Reserve Bank President Esther George, who has been arguing for a near-term U.S. rate hike, said the Fed should now take a “wait and see” approach to hiking borrowing costs due to financial volatility and China’s economic slowdown.
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Market strains warrant caution on rate hikes -Fed's George

(Adds context and policymaker comments made in separate interview)

WASHINGTON, Aug 27 (Reuters) - A Federal Reserve policymaker who has argued for a near-term U.S. interest rate hike said central bankers should take a “wait-and-see” approach to tightening policy due to a financial market sell-off and China’s economic slowdown.

The comments by Kansas City Fed Bank President Esther George, aired on Thursday in a cable television interview, were a sign that concerns over financial market turmoil have penetrated deeply into the U.S. central bank, further reducing the likelihood of a Fed rate hike in September.

George’s expressed caution followed comments made Wednesday by the head of the New York Fed that the case for a September rate lift-off now seemed “less compelling.” The chief of the Atlanta Fed on Monday also appeared more cautious about raising rates next month.

“Given what we’ve seen recently, I think we just have to wait and see,” George told Fox Business Network.

In an interview on CNBC network, George said “this week’s events complicate the rate picture.”

While softening her stance, George made clear she was not ruling out the possibility she would support a rate increase as early as September. “I don’t want to take too much signal from something that could turn out to be noise. I don’t want to overreact to short-term data that may not in the long term really turn out to be significant for that kind of decision,” she told Fox Business News.

(Reporting by Timothy Ahmann; Editing by Chizu Nomiyama and Andrea Ricci)

Wall Street extends gains, helped by GDP data

While strong data points to increased chances of an interest rate hike in September, some investors said the recent volatility in markets triggered by fears of slowing growth in China could force the U.S. Federal Reserve to hold back on a rate increase next month. A rate hike could put a stop to easy money that has helped fuel global markets in the past few years. Kansas City Federal Reserve President Esther George, who has been arguing for a near-term U.S. rate hike, said the Fed should now take a “wait and see” approach to hiking rates due to market volatility and China’s economic slowdown. http://q.gs/8fmLZ

Market strains warrant caution on rate hikes: Fed's George

WASHINGTON (Reuters) - A Federal Reserve policymaker who has argued for a near-term U.S. interest rate hike said central bankers should take a “wait-and-see” approach to tightening policy due to a financial market sell-off and China’s economic slowdown.

The comments by Kansas City Fed Bank President Esther George, aired on Thursday in a cable television interview, were a sign that concerns over financial market turmoil have penetrated deeply into the U.S. central bank, further reducing the likelihood of a Fed rate hike in September.

George’s expressed caution followed comments made Wednesday by the head of the New York Fed that the case for a September rate lift-off now seemed “less compelling.” The chief of the Atlanta Fed on Monday also appeared more cautious about raising rates next month.

“Given what we’ve seen recently, I think we just have to wait and see,” George told Fox Business Network.

In an interview on CNBC network, George said “this week’s events complicate the rate picture.”

While softening her stance, George made clear she was not ruling out the possibility she would support a rate increase as early as September. “I don’t want to take too much signal from something that could turn out to be noise. I don’t want to overreact to short-term data that may not in the long term really turn out to be significant for that kind of decision,” she told Fox Business News.

(Reporting by Timothy Ahmann; Editing by Chizu Nomiyama and Andrea Ricci)

Market strains warrant caution on rate hikes: Fed's George

A Federal Reserve policymaker who has argued for a near-term U.S. interest rate hike said central bankers should take a “wait-and-see” approach to tightening policy due to a financial market sell-off and China’s economic slowdown. The comments by Kansas City Fed Bank President Esther George, aired on Thursday in a cable television interview, were a sign that concerns over financial market turmoil have penetrated deeply into the U.S. central bank, further reducing the likelihood of a Fed rate hike in September. George’s expressed caution followed comments made Wednesday by the head of the New York Fed that the case for a September rate lift-off now seemed “less compelling.” The chief of the Atlanta Fed on Monday also appeared more cautious about raising rates next month. http://q.gs/8fm86

Market strains warrant caution on rate hikes: Fed's George

WASHINGTON (Reuters) - A Federal Reserve policymaker who has argued for a near-term U.S. interest rate hike said central bankers should take a “wait-and-see” approach to tightening policy due to a financial market sell-off and China’s economic slowdown.

The comments by Kansas City Fed Bank President Esther George, aired on Thursday in a cable television interview, were a sign that concerns over financial market turmoil have penetrated deeply into the U.S. central bank, further reducing the likelihood of a Fed rate hike in September.

George’s expressed caution followed comments made Wednesday by the head of the New York Fed that the case for a September rate lift-off now seemed “less compelling.” The chief of the Atlanta Fed on Monday also appeared more cautious about raising rates next month.

“Given what we’ve seen recently, I think we just have to wait and see,” George told Fox Business Network.

In an interview on CNBC network, George said “this week’s events complicate the rate picture.”

While softening her stance, George made clear she was not ruling out the possibility she would support a rate increase as early as September. “I don’t want to take too much signal from something that could turn out to be noise. I don’t want to overreact to short-term data that may not in the long term really turn out to be significant for that kind of decision,” she told Fox Business News.

(Reporting by Timothy Ahmann; Editing by Chizu Nomiyama and Andrea Ricci)

Fed's George: Market Volatility's Effect Is Unclear

Bloomberg’s Brendan Greeley and Michael McKee recap a Bloomberg interview with Kansas City Federal Reserve Bank President Esther George at the Jackson Hole economic symposium in Jackson Hole, Wyoming. They speak on “Bloomberg Surveillance.” (Source: Bloomberg)

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Read Fed’s George: Market Volatility’s Effect Is Unclear on bloomberg.com

Fed's George softens rate hike stance

WASHINGTON (Reuters) - Kansas City Federal Reserve Bank President Esther George, who has been arguing for a near-term U.S. rate hike, said the Fed should now take a “wait and see” approach to hiking borrowing costs due to financial volatility and China’s economic slowdown.

“Given what we’ve seen recently, I think we just have to wait and see,” George told Fox Business Network in an interview that aired on Thursday.

While softening her stance, George made clear she was not ruling out the possibility she would support a rate increase as early as September. “I don’t want to take too much signal from something that could turn out to be noise. I don’t want to overreact to short-term data that may not in the long term really turn out to be significant for that kind of decision,” she said.

(Reporting by Timothy Ahmann; Editing by Chizu Nomiyama)

Market strains warrant caution on rate hikes - Fed's George

A Federal Reserve policymaker who has argued for a near-term U.S. interest rate hike said central bankers should take a “wait-and-see” approach to tightening policy due to a financial market sell-off and China’s economic slowdown. The comments by Kansas City Fed Bank President Esther George, aired on Thursday in a cable television interview, were a sign that concerns over financial market turmoil have penetrated deeply into the U.S. central bank, further reducing the likelihood of a Fed rate hike in September. George’s expressed caution followed comments made Wednesday by the head of the New York Fed that the case for a September rate lift-off now seemed “less compelling.” The chief of the Atlanta Fed on Monday also appeared more cautious about raising rates next month. http://q.gs/8fluS