Reply #73: Treasuries soar on think-tank report, retail sales

[UpInArms]

That "Think-Tank" must have lots of clout!

http://today.reuters.com/investing/financeArticle.aspx?...

NEW YORK, March 14 (Reuters) - U.S. Treasury debt prices rallied on Tuesday on softer-than-expected February retail sales data and a report from a consulting firm saying the Federal Reserve may soon stop raising interest rates.

Selling began in overnight trade as Germany's ZEW investor sentiment came in lower than expected, capping concerns global interest rates would have to rise to cope with an economic pick-up around the world.

"We (saw) buying off the weak ZEW numbers out of Germany and off the think tank report that says the Fed may pause at the end of this month (with fed funds) at 4.75 percent and certainly will pause in May at 5 percent," said Andrew Brenner, head of fixed income at Investec U.S. in New York.

But traders said the market was also using the data and the report on the outlook for Fed interest rate increases as an excuse to push prices higher after nearly two months of selling that last week pushed benchmark yields to their highest in nearly two years.

Benchmark 10-year notes jumped 20/32 for a yield of 4.69 percent, down from 4.77 percent on Monday. Interest rate futures also rose sharply.

The report on the Fed, by Medley Global Advisors, said the Fed would almost surely raise official short-term rates at least one more time, to 4.75 percent, but perhaps not much more than that.

...more...

I wonder who is on that membership roster?