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TREASURIES-Yields rise as investors wait on central bank speeches
August 22, 2017 / 6:59 PM / 4 months ago

TREASURIES-Yields rise as investors wait on central bank speeches

 (Updates prices)
    * Jackson Hole conference watched for monetary policy clues
    * ECB's Draghi to speak on Wednesday
    * Stronger stocks reduce demand for bonds

    By Karen Brettell
    NEW YORK, Aug 22 (Reuters) - U.S. Treasury yields rose on
Tuesday as investors awaited speeches by top central bankers
later in the week for signals about monetary policy, and in the
absence of major economic data.
    Yields fell to almost two-month lows on Friday as political
discord in Washington sparked safety buying and on continuing
concern about tensions between the United States and North
Korea.
    Bonds have now retraced some of that rally as investors wait
for a new catalyst to give the market direction.
    “I think it’s a pattern of consolidation we’ve been falling
into,” said Aaron Kohli, an interest rate strategist at BMO
Capital Markets in New York. “We’ve been looking for a bit of
yield bounce here just because we’ve done nothing but rally on
very little news in the last couple of days.”
    Benchmark 10-year notes             were last down 10/32 in
price to yield 2.22 percent, up from 2.18 percent on Monday. The
yields fell to 2.16 percent on Friday, the lowest level since
June 27.
    Stronger stock markets on Tuesday also reduced safety buying
of U.S. debt.              
    Investors were focused on this week’s annual central banking
conference in Jackson Hole, Wyoming, which begins on Thursday.
Federal Reserve Chair Janet Yellen and European Central Bank
President Mario Draghi are among the scheduled speakers.
    Many analysts and investors, however, do not expect that
much new information will emerge at the conference.
    Two sources told Reuters last week that Draghi will not
deliver any new policy message at Jackson Hole, tempering
expectations for the ECB to start charting its course out of
stimulus.             
    “You can get the market ready for tapering but you can do
that in September, and it's widely expected anyway. Why add more
fuel to the fire?” Kohli said.
    Draghi will speak at an event in Germany on Wednesday ahead
of Jackson Hole.
    The Fed is expected to announce a plan to reduce its balance
sheet at its September policy meeting.

 (Editing by Meredith Mazzilli and Leslie Adler)
  
 
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