Treasuries Advance on Concerns U.S. Economic Growth Will Falter |
| Bloomberg - Aug 26, 2010 |
Treasuries advanced as lingering concerns the U.S. economic recovery will lose momentum revived demand for the relative safety of government debt.
The extra yield investors demand to hold 30-year bonds over 2-year notes shrank to the lowest level since September 2009. Nouriel Roubini, the New York University economist who predicted the global financial crisis, said U.S. growth will be “well below” 1 percent in the third quarter and put the odds of a renewed recession at 40 percent.
“As the economy is no longer in a recovery phase, a bull flattening of the yield curve will continue,” said Satoshi Okumoto, general manager in Tokyo at Fukoku Mutual Life Insurance Co., which oversees the equivalent of $65 billion in assets. “There is no strong reason to sell debt now.”
The yield on the 10-year notes fell one basis point to 2.53 percent at 12:31 p.m. in Tokyo after adding five basis points yesterday, according to BGCantor Market Data. The 2.625 percent security maturing August 2020 rose 2/32, or 63 cents per $1,000 face amount to 100 26/32. The rate touched 2.4157 percent yesterday, the lowest level since January 2009.
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- Posted: 2010-08-26 00:33:02
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