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Yellen anti-inflation alarm danger is BMO 10-year interest rate of 2.75%

$ 1.13 trillion Treasury market may be difficult for some time Federal Reserve Chairman Janet Yellen echoed his colleagues in the attitude of decision makers that they need to start raising interest rates this month.

How bad will the largest bond market in the world depend on maintaining a certain level of technical competence, said Ian Lyngen and Aaron Kohli BMO Capital Markets. The 10-year benchmark results at 2:49 p.m., struggling to stay above 2.5 percent this week, despite a possible increase in the Fed rate rise in March, up more than 75 percent.

This may change again confirms Yellen at 1:00 pm New York time, the central bank plans to lift a loan from March 15, 10-year yields may increase rapidly by 2.55 percent, corresponding to 2,017 high, and go to 2, 64 percent, two years arrived after the last Fed rate increase in December.

According to strategists at the BMO, it will be a “two-part” price will usually create a rally in front of the signal. And, in fact, “long-term momentum is still strong, for sure,” they write in the memory of Friday.

The problem, as it turns out, is the undeniable decline of the Treasury can cross sell has gone through this phase, leaving 2.75 percent while the next target. It will be a maximum interest rate of 10 years, since April 2014.

“Given the way the market traded to one, technical indicators are more important,” wrote Lyngen and Kohli.

Fund has visited the area only 25 points in 2017 when investors evaluate the proposed tax plan President Donald Trump, such as tax cuts, deregulation and infrastructure spending, along with his position in the trade. The situation has become more complicated, Fed officials also president John Williams San Francisco Fed and New York Fed chairman William Dudley received a rise in long expected rates in March after consultations this week in the market an opportunity to move so quickly discount.

Goal to push the market price

“All of us really just waiting to hear Yellen” Lyngen and Kohli wrote. “Our basic scenario is that it is not much, if Fed speaker largely pre-determined goal to push the market price, which reached alarming performance in March, the market price.

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