U.S Benchmark Yields Expected To Print Record Lows

By Unknown

Selasa, 02 Agustus 2016

U.S Benchmark Yields Expected To Print Record Lows

Reference Treasury yields are going to set a new all-time low in March if they continue rallying at the current rate.

Ten-year yields fell by almost 40 basis points over the past three weeks to 1.66 percent. The record of 1.379 percent was set in July 2012. Plunging stock prices stimulate demand for the relative safety of government debt, while traders abandon paris for the Federal Reserve to raise interest rates. Returns close to zero in Japan and Germany stimulate the attractiveness of US Treasuries.

"We will see a record level of about 1 percent" for the benchmark, said Toshifumi Sugimoto, chief investment officer at Capital Asset Management in Tokyo. "We will see more money in US Treasuries. "Sugimoto, who has 30 years of fixed income experience, said it is buying long-term securities and predicted the rally will last to April.

the 10- the performance of the year Treasury was little changed Friday from 10:20 in Tokyo, according to Bloomberg Bond Trader data. the price of the 1.625 percent security due in February 2026 was 99 22/32.

the index of US Treasury bonds Bloomberg returned 3.6 percent this year, while the MSCI All Country World Index of shares fell 12 percent.

chances that the Fed will follow the increase in rates in December with another in 2016 fell to 11 percent, from a probability of 93 percent at the beginning of the year, futures indicate.

Bloomberg

[ad_2]
Read More: U.S Benchmark Yields Expected To Print Record Lows

Share :

Facebook Twitter Google+