American Bond Market started to focus on the expectations of fiscal policies

According to the financial specialists, American Bond Market started to focus on the expectations of fiscal policies. On the American bond market the prices Ä±f June 30-year term bonds went up a few points after the low level seen in March. There is a seasonal effect behind the rise, a slowdown in the employment market and negative pricing for the first quarter growth. The weakening of the data makes it debatable that the Fed will delay interest rate hikes on the market. On the other hand, the unemployment rate fell to 4.5 % in March, and the Fed voices it at every opportunity that it is safe for the economic recovery.

When we look at the process of Bond market at the last times in the USA, the market have been pricing the problems in the fiscal reforms after electing Trump as president. Technically speaking, bond prices have moved closer to the overbought territory with a rapid rise. The purchasing trend is related to the high economic conditions and the reaction to delayed reforms. For this reason, it will want to take foam at market prices with a step in infrastructure investments and a decrease in geopolitical risks.