Fed Indicates Rate Patience
Financial markets enjoyed a relatively quiet week with reported corporate earnings proving better than expected and investors awaiting news on U.S./China trade discussions. U.S. Treasury yields have turned around on the heels of Fed signals that it will be patient on interest rate moves and flexible on its strategy for reducing its balance sheet. Wednesday’s statement from the Fed helped ease investor fears that the central bank would continue with plans to tighten policy in the face of cooling economic data. As a result, 10-year Treasury yields have fallen during the week to low 2.60 levels after reaching 2.76 percent last week.