Bonds little changed before Fed's Williams speaks
NEW YORK: US Treasury yields were little changed on Monday before New York Federal Reserve President John Williams was due to speak after comments by Richard Clarida, the newly appointed vice chair of the Federal Reserve, were viewed as dovish.
Clarida said on Friday that US interest rates are nearing Fed estimates of a neutral rate, and being at neutral "makes sense."
Fed Chairman Jerome Powell said last Wednesday that a "really strong" US economy is likely to continue growing, but softness in housing and high levels of corporate debt have caught the Federal Reserve's eye.
"The market's interpretations of those comments were very dovish," said Thomas Simons, a money market economist at Jefferies in New York.
Market direction was constrained on Monday with no main catalysts to drive direction before the US Thanksgiving holiday and with no major economic events or no new supply.
"Very little data, no nominal supply, holiday shortened week. It all kind of adds up to no good reason to do anything unless there are headlines that come across that change the narrative," said Simons.
The bond market will be closed on Thursday for Thanksgiving and will close early on Friday.
Investors also remained focused on headlines around trade and Britain's exit from the European Union.
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