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Yellen notes "uncertainty" over inflation - gold and bond prices rise

Published 07/12/2017, 08:50 AM
© Reuters.  Yellen notes "uncertainty" over inflation - gold and bond prices rise
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  • Fed Chair Janet Yellen's prepared remarks for her 10 AM ET congressional testimony are out.
  • While she repeats past remarks about recent low inflation readings being transitory, she says there's "uncertainty" about how inflation will respond to reduced slack in the economy.
  • The Fed Funds rate, she says, won't have to rise much further to get to a neutral policy stance, though factors currently holding down the neutral rate are likely to diminish over time.
  • Gold (NYSEARCA:GLD) bulls like what they hear, sending the metal higher by 0.75% to $1,225 per ounce. Bond (TLT, TBT) bulls like it too, with the 10-year Treasury yield falling a full five basis points to 2.31%.
  • Stock index futures (SPY, QQQ, DIA) add to gains, with the S&P 500 now higher by 0.4%.
  • Now read: Resource Sector Digest: Flash Crashes - Do All Gold And Silver Traders Have Fat Fingers?


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