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Beecroft: Short treasuries at 2.25%

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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.