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TREASURIES-Yields dip as Yellen avoids monetary policy in speech
August 25, 2017 / 2:41 PM / 3 months ago

TREASURIES-Yields dip as Yellen avoids monetary policy in speech

 (Recasts with Yellen's speech, updates prices)
    * Yellen does not address monetary policy
    * ECB's Draghi speech in focus
    * U.S. capital goods orders rise in July

    By Karen Brettell
    NEW YORK, Aug 25 (Reuters) - U.S. Treasury yields dipped
slightly on Friday after Federal Reserve Chair Janet Yellen did
not mention monetary policy in a highly anticipated speech,
relieving some investors who thought she might make hawkish
comments on the economy.
    At a conference in Jackson Hole, Wyoming, Yellen said that
reforms put in place after the 2007-2009 financial crisis have
strengthened the financial system without impeding economic
growth, and any future changes should remain modest.
            
    “We’re seeing a little bit of a relief that (Yellen) wasn’t
hawkish rally in Treasuries, but it’s minor,” said John Briggs,
head of strategy for the Americas at NatWest Markets in
Stamford, Connecticut.
    Benchmark 10-year notes             gained 5/32 in price to
yield 2.176 percent, down from 2.194 percent on Thursday.
    European Central Bank President Mario Draghi was also due to
address the annual economic policy conference later on Friday.
    Investors will watch for any signals that the ECB is close
to paring its bond purchases, though two sources have told
Reuters that Draghi will also not deliver any new policy message
at the event.             
    Yields for benchmark bonds have held in a tight range since
falling to almost two-month lows last Friday on concerns about
political discord in Washington and tensions between the United
States and North Korea.
    Data this Friday showed that new orders for key U.S.-made
capital goods rose slightly more than expected in July and
shipments surged, suggesting an acceleration in business
spending early in the third quarter.             

 (Additional reporting by Sam Forgione; Editing by Meredith
Mazzilli)
  
 
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