The efficiency curve of bonds of the United States breaks a mark

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The efficiency curve of bonds of the United States breaks a mark

US economy growth and bonds

After one week marked by the nervousness with regard to a possible commercial war impelled by the management of president Trump, and the imposition of tariff rates to the steel and aluminum the markets of capitals returned to a positive footpath of yields.

The returns of different treasury bonds from the United States had an increase Monday and the efficiency curve lowered after a quite loose auction of debt to 2 years, after which the fear to a global commercial dispute that could rather hard cause a rise for the passed session, this was what indicated Reuters agency.

The supply of 30,000 million dollars in papers to two years, along with 51,000 million dollars in notes to three months and 45,000 million dollars in papers to six months, is part of the emission record of this week by an aggregate 294,000 million dollars, detailed Reuters.

According to the agents of the market of New York, the Department of the Treasure of the country made an increase in the emission of the debt, all this facing financing much more high a federal cost after a budget agreement of two years that was approved during February and for the compensation of the fall that is expected in the income by the tributary reform that announced the month of December.

The Federal Reserve building

The Federal Reserve building

Wall Street, on the other hand, pressed to the market of fixed rent, said tie sources to two tables of treasury of investment banks from the city of Lima.

According to what was commented by Reuters, the yield of bonds to 10 years had a gain of 2.4 basic points being located in the closing in the 2,850% after to have backed down until the 2,792%, in its minimum of 6 weeks. The differential of yield between the debt to five and 30 years stood in the 2.1 basic points, to close in 44,10 basic points.

One hopes that the Treasure supplies 35,000 million dollars in debt to five years and 24,000 million dollars in documents of debt to a year.

Rate of reference of the Federal Reservations system

The Federal Reserve would have to continue raising to the east interest rates year and the next one, to avoid an overheating that shortens the economic expansion that is gaining impulse, commented Loretta Mester, discharge federal civil employee of the Federal Reservations system or FED of Cleveland.

According to which the expert commented, the FED can make the decision to accelerate or to slow down the gradual hardening of the currency, the recent announcements of the tariffs to the imports could generate a war commercial that could affect the economy drastically.

In addition Mester added in an interchange in the University of Princeton that if the economy makes the evolution that it is hoping, thinks that the gradual increases of the interest rates could be most appropriate for this and the next year.

For the governor of the host FED Cleveland the tariffs to the metal imports imposed by the United States, those that are planned for the Chinese imports, and the renegotiation of the Free Trade Agreement of North America, TLCAN, darken the commercial landscape and raise risks on the economy.

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