Wall Street bond dealers whipsawed on bearish treasuries bet
Bareksa • 21 Apr 2014
On March 31, Federal Reserve Chair Janet Yellen highlighted inconsistencies in job data and said “considerable slack” in labor markets showed the Federal Reserve’s accommodative policies will be needed for “some time.” - (Bloomberg/Andrew Harrer)
One reason yields have fallen is the U.S. labor market, which has yet to show consistent improvement
<span 1.6em;"="">Bloomberg - Betting against U.S. government debt this year is turning out to be a fool’s errand. Just ask Wall Street’s biggest bond dealers.
While the losses that their economists predicted have yet to materialize, JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and the 20 other firms that trade with the Federal Reserve began wagering on a Treasuries selloff last month for the first time since 2011. The strategy was upended as Fed Chair Janet Yellen signaled she wasn’t in a rush to lift interest rates, two weeks after suggesting the opposite at the bank’s March 19 meeting.