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TREASURIES-Yields fall as Yellen speech in focus for rate view
August 22, 2016 / 1:26 PM / a year ago

TREASURIES-Yields fall as Yellen speech in focus for rate view

* Yellen's Jackson Hole speech on Friday in focus
    * Treasury to sell $88 bln new supply

    By Karen Brettell
    NEW YORK, Aug 22 (Reuters) - U.S. Treasury prices gained
slightly on Monday as investors waited on a speech by Federal
Reserve Chair Janet Yellen on Friday for any new indications on
when the U.S. central bank will next raise interest rates.
    Yellen is in focus with no major U.S. economic data due
until Friday's second read of gross domestic product for the
second quarter.
    Fed Vice Chairman Stanley Fischer said on Sunday that the
Fed is close to hitting its targets for full employment and 2
percent inflation, joining other senior Fed speakers including
New York Fed President William Dudley in offering an upbeat view
of the U.S. economy in recent weeks. 
    "This morning people are focused on Fischer's remarks," said
Gennadiy Goldberg, an interest rate strategist at TD Securities
in New York.
    "The fact that he started off with the words that we are
close to our (inflation) target is definitely hawkish," Goldberg
said. "The question is does he represent the Fed's view."
    Treasury yields rose in overnight trading on Fischer's
comments, before falling back in the U.S. trading session.
    Benchmark 10-year notes were last up 8/32 in
price to yield 1.55 percent, down from 1.58 percent late on
    Dudley last week said that the Fed could raise rates as soon
as September, though most economists and investors view a hike
that month as a long shot and see December as the most likely
month for an interest rate increase. 
    Yellen will speak as central bankers from around the world
gather at an annual meeting in the mountains of Jackson Hole,
    On the supply front, the Treasury Department will sell $88
billion in short and intermediate-dated coupon-bearing debt this
week, starting with a $26 billion auction of two-year notes on
    It will also sell $34 billion in five-year notes on
Wednesday and $28 billion in seven-year notes on Thursday.

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