Bonds Rise On View Fed Won’t Hike Rates
T-bonds are trading at a 20-day high on the view that the Fed will not raise rates for a third time this year. Recent comments from Federal Reserve Chief Alan Greenspan and other Fed officials have implied that monetary policy makers think inflation is contained. Economic data from the past week has also suggested that inflation is under control and will not give the Fed reason to raise rates. Dec. T-bonds are one of the strongest members of the Momentum-5 List and are currently trading near the top of their morning range.
Heading the Momentum-5 List, Nasdaq 100 futures are rallying to new highs and the SPs are trading higher.
The European Central Bank hiked interest rates one-half percent yesterday. Although the rise was expected, Swiss francs, the weakest contract on the Implosion-5 List, are breaking down in pit trading today and have fallen to a three-month low. The contract is also on the 6/100 Low Volatility List, which gave the heads up that the contract could make a big move.
Crude oil futures and its derivatives are trading at 5-day highs.
Here are the highlights around noon Eastern time:
Stock Index and Bond Futures•December T-bonds [USZ9>USZ9]: +15/32 to 114 00/32
• December S&Ps [SPZ9>SPZ9]: +12.00 to 1372.50
• December Dow futures [DJZ9>DJZ9]: +73.0 to 10725
• December NASDAQ 100 futures [NDZ9>NDZ9]: +18.50 to 2713.00
Currencies
•December dollar index futures [DXZ9>DXZ9]: +.33 to 99.75
•December Swiss francs [SFZ9>SFZ9]: -.0091 to .6150
Energies•December crude [CLZ9>CLZ9]: +.42 to 22.98
•December unleaded gas [HUZ9>HUZ9]: +.0078 to .6420
•December heating oil [HOZ9>HOZ9]: +.0069 to .6120
Metals•December gold [GCZ9>GCZ9]: -.3 to 293.0
Grains•January soybeans [SF0>SF0]: +2 1/2 to 484 3/4
Meats•December live cattle [LCZ9>LCZ9]: +.500 to 69.250
Softs and Fibers•December cocoa [CCZ9>CCZ9]: +4 to 859
•December coffee [KCZ9>KCZ9]: +.95 to 106.10