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TREASURIES-Bonds steady as central bankers in focus
August 21, 2017 / 1:47 PM / a month ago

TREASURIES-Bonds steady as central bankers in focus

    * Jackson Hole conference watched for monetary policy clues
    * ECB's Draghi to speak on Wednesday

    By Karen Brettell
    NEW YORK, Aug 21 (Reuters) - U.S. Treasuries were steady on
Monday as investors awaited speeches by top central bankers
later this week for further signals about monetary policy.
    Investors were focused on this week’s annual central banking
conference in Jackson Hole, Wyoming, which begins on
Thursday, where Federal Reserve Chair Janet Yellen and European
Central Bank President Mario Draghi are due to speak.
    Draghi, who will also speak at an event in Germany on
Wednesday, will be the main focus as investors watch for any
indications that the ECB may begin paring asset purchases.
    “Are they going to try to pare back asset purchases, what
their thinking is on inflation,” are among the main questions, 
said Subadra Rajappa, head of U.S. interest rate strategy at
Societe Generale in New York.
    Yellen’s speech on Friday will center on financial stability
and is seen as less likely to provide clues on the Fed’s balance
sheet plans.
    Many analysts and investors expect that the U.S. central
bank will announce a plan to reduce its balance sheet at its
September meeting.
    Treasury yields fell to almost two-month lows on Friday as
personnel changes and discord in Washington reduced expectations
that lawmakers will pass fiscal measures aimed at boosting
growth.
    U.S. President Donald Trump on Friday fired his chief
strategist Steve Bannon in the latest White House shake-up.
            
    Many investors were seen as reluctant to buy Treasuries at
relatively low yields, however, which kept a cap on the bond
rally.
    “Yields have refused to meaningfully rally,” said Rajappa.
“I think the market’s resisting going mass long at these levels
because everything looks very rich.”
    Benchmark 10-year notes             were last up 2/32 in
price to yield 2.19 percent, little changed from on Friday. 

 (Editing by Meredith Mazzilli)
  
 
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