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Treasury yields inch higher as tax bill set for unveiling

“Treasury yields were subdued on Friday as investors awaited the final version of the Republican tax bill, which is set for unveiling later in the day” writes Sunny Oh for marketwatch.com. Investors watched the progress of the tax bill.The 10-year benchmark Treasury yield TMUBMUSD10Y, +0.34%  rose to 2.357%, from 2.346% on late Thursday.What did strategist say? “Interest rates also seem underwhelmed by the 2018 impact of the tax bill.The 30-year bond yield TMUBMUSD30Y, +0.03% was flat at 2.710%. Source: marketwatch.com Share This:

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MGM Growth Properties boosts dividend by 6.3%

“MGM Growth Properties LLC MGP, -0.17% said Friday it will raise its quarterly cash dividend on Class A shares to 42 cents a share, up 6.3% from 39.5 cents a share” writes Reporter Editor for marketwatch.com. The new dividend will be payable Jan. 16 to shareholders of record on Dec. 29.Based on the real estate investment trust’s Thursday stock closing price of $29.10, the new annual dividend rate of $1.68 would imply a dividend yield of 5.77%, compared with the SPDR Real Estate Select Sector ETF’s XLRE, +0.09% implied yield…

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Why the yield curve flattening — a recession red flag — is the ‘real deal’

“See: Should investors still worry if the yield curve sends this ominous signal?” writes Sunny Oh for marketwatch.com. Gundlach pointed out that previous attempts to look past the yield curve’s predictive abilities have ended poorly.History has been replete with well-respected central bankers unperturbed by those who see the indicator as a bond market Cassandra.The slope of the yield curve offers a simple way to get a pulse on the market’s expectations for interest rates, and accordingly, economic prospects. Source: marketwatch.com Share This:

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Yield curve flattens further on growing expectation for Fed to raise rates

“The 10-year German bond yield TMBMKDE-10Y, -0.60% was barely changed at 0.310%” writes Sunny Oh for marketwatch.com. The 10-year French bond yield TMBMKFR-10Y, -1.49% edged higher a basis point to 0.644%.The 30-year bond yield TMUBMUSD30Y, -0.63%  added 2.8 basis points to 2.710%.Holders of U.S. government paper watch European interest rates closely as they tend to move in lockstep with U.S. rates, with some analysts saying that low European yields have kept a lid on Treasury rates.The 2-year note yield TMUBMUSD02Y, +2.07%  rose 2.4 basis points to 1.811%. Source: marketwatch.com Share This:

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Micron stock rises after MKM says ‘favorable supply/demand environment’ to continue

“We believe that the continued favorable supply/demand environment will extend into 2018 and this, coupled with continued cost reduction catalysts specific to Micron, should ultimately yield multiple expansion,” he wrote” writes Emily Bary for marketwatch.com. Micron shares have gained 92% so far in 2017, while the Philadelphia Semiconductor Index SOX, -1.01% is up 36% and the S&P 500 Index SPX, -0.05% is up 19%. Source: marketwatch.com Share This:

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Treasury yields hold decline after Fed raises benchmark interest rate

“The 10-year Treasury note yield TMUBMUSD10Y, -1.52% was at 2.362%, from 2.403% on late Tuesday” writes Sunny Oh for marketwatch.com. The 2-year note yield TMUBMUSD02Y, -1.77% 1.803%, from 1.829%.They also forecast U.S. GDP forecasts to rise to 2.5% next year from 2.1% and unemployment to fall to 3.9%.Treasury yields held onto its earlier fall after the Federal Open Market Committee voted to raise rates by a quarter percentage point on Wednesday, bringing it up to between 1.25% and 1.50%.The Fed stuck to its forecast for three rate increases in 2018. Source:…

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The Economy Grows? Buy Tech! The Yield Curve Flattens? Also Buy Tech!

“To investors, it seems like big technology firms can do no wrong: Even signs of economic worry could be good news for them” writes Jon Sindreu Wsj for wsj.com. After eight years of continued expansion, some analysts are worried about the U.S. yield curve, which is now at its flattest since 2007, before the financial crisis. A flattening yield curve can […].  Source: wsj.com Share This:

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Goldman Sachs predicts bumper returns for commodities next year

“Therefore, a positive roll yield in oil will bring returns of around 15 percent next year, Goldman analysts said” writes Krisztian Bocsi for cnbc.com. Goldman Sachs is expecting the commodities sector to generate returns of almost 10 percent next year, more than other assets over the long run.Robust demand growth for raw materials worldwide should underpin the case for investors to own them, Goldman said in a research note published Monday.Unlike equities, which discount future growth, commodities rise as the current levels of demand offset the amount of available supply,…

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US Treasury yields slip after JOLTS data

“U.S. government debt yieldsslipped Monday after the Bureau of Labor Statistics announced that the number of job openings was stagnant in the month of October” writes Alexandra Gibbs for cnbc.com. The yield on the benchmark 10-year Treasury note fell to 2.381 percent at 1:50 p.m.ET, while the yield on the 30-year Treasury bond was down at 2.768 percent. Bond yields move inversely to prices. Source: cnbc.com Share This:

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Here’s why the Fed will hike interest rates

“New York Fed President William Dudley has repeatedly warned the Fed would raise rates at a faster clip if financial conditions did not tighten as desired” writes Senior Economics Reporter for marketwatch.com. The stock market continues to routinely set records, and the 10-year Treasury yield is virtually unchanged after the Fed has increased interest rates four times.Many analysts say the so-called yield curve may flatten and could cause the Fed to abort its rate-hike cycle.Eastern on Wednesday, the Fed will release a policy statement, revised economic forecasts, and “dot plot”…

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