Bonds Fall As Fed Hints More Rate Hikes To Come
The FOMC raised interest rates
for the 15th consecutive time,
the 25bp increase took the Fed Funds rate to 4.75%
(report).
Of more concern to the markets was the accompanying statement that suggested
further increases may be required.
Earlier in the day, the Conference Board’s Consumer Confidence Index rose to
107.2 in March (report).
Treasuries fell sharply, with most of the losses coming immediately after the
Fed’s decision. The US Dollar Index rose, boosted by the Dollar’s strong
performance versus the Yen.
Crude Oil closed above $66 for the first time in almost two months. Unleaded
Gas, Heating Oil and Natural Gas also rose.
Sugar jumped almost 4% higher, with strong ethanol demand once again cited as
the reason behind higher prices. Orange Juice hit a new contract high, rising
almost 3%.
Gold closed flat as traders wrestled with the idea of whether interest rate
rises are bullish or bearish for the yellow metal.
Conference Board’s
Consumer Confidence Index Climbs To 107.2 For March (report)
Fed Raises Rates By Another 25 Basis Points To 4.75% (report)
Ashton Dorkins
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