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Beecroft: Short treasuries at 2.25%

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October 31, 2013 10 year treasuries, 10 year yields, bond buying, bond investment, bond prices, bond strategy, bond yields, bonds, dollar, economic policies, economic recovery, economy, fed, fed statement, federal reserve, fiscal policy, fomc, fragile recovery, fundamental market, government shutdown, investing in treasuries, labor market, macro, monetary stimulus, pared gains, pmi, pmit, qe, quantitative easing, saxo bank, saxo tv, short, statement, stimulus, tighter financial conditions, traded lower, tradingfloor.com, treasuries, unemployment, us bonds, us debt ceiling, us economy, us government, us jobs, video, yields

10-year yields rose to the highest in a week after the FOMC maintained its monetary stimulus.

The Federal Reserve’s monthly purchases will remain at USD85 billion a month amid concerns the recovery remains fragile.

In a statement it said the labor market has improved and economic growth was “moderate.” But the committee noted that unemployment is still high. 

Saxo Bank’s Nick Beecroft the jobs numbers are going to remain disappointing and the recent government shutdown will skew the data.

Recent reports show the critical labor and housing sectors had already slowed even before the shutdown in the first half of October, adding support to views that the Fed will not be ready to let the economy stand on its own for months.

Many analysts say the comments were more hawkish than expected, removing a reference to tighter financial conditions.

In light of the recent US economc data and the Fed's statement Nick Beecroft says 2 and  a quarter percent is a good place to short US treasuries.