Bernanke and the resurrection of St. John (Keynes)
“Nov. 30 (Bloomberg) — Treasuries headed for their best month in 12 years as Federal Reserve Chairman Ben S. Bernanke signaled he may lower interest rates because of “turbulence'’ in financial markets.
An index of Treasury securities returned 3.2 percent in November, according to Merrill Lynch & Co., as traders bet the Fed will cut the target rate for overnight loans between banks next month by as much as half a percentage point. Rising gasoline prices, a housing slump and reduced access to credit will probably create “headwinds for the consumer,'’ Bernanke said in a speech yesterday.
“Bernanke basically said, `Guys, we’ve got a big headwind coming here,’ and opened the door completely to a rate cut in December,'’ said David Keeble, head of fixed-income strategy in London at Calyon, the investment-banking arm of Credit Agricole SA, France’s second-biggest bank. “And I suspect we will get a couple more after that as well.'’
http://www.bloomberg.com/apps/news?pid=20601009&sid=arGo35CbfKtg&refer=bonds