Treasuries rallied, pushing five-, seven- and 10-year yields to record lows, amid concern the European debt crisis is widening and as data showed the U.S. economic expansion slowed during the first quarter.
Thirty-year bond yields fell to the lowest since December 2008 as U.S. weekly jobless claims exceeded forecasts, stirring speculation that tomorrow’s May employment data may trail estimates. The euro fell to an 11-year low versus the yen, while 10-year yields on German, French, Canadian and Dutch bonds declined to records lows. The Federal Reserve bought $1.8 billion of Treasuries due from February 2036 to August 2041.
“What’s going on is ultimate fear again,” said Joseph Balestrino, a fixed-income strategist for Federated Investors Inc., a Pittsburgh-based money manager that oversees $369.7 billion in an interview on Bloomberg Television’s “Inside Track” with Erik Schatzker. “It’s hard for us to want to buy government bonds at these levels. How low it can go is really hard to say because we’ve never been here before. This is not rational.”
The benchmark 10-year yield fell five basis points, or 0.05 percentage point, to 1.57 percent at 12:34 p.m. New York time. The 1.75 percent security maturing in May 2022 gained 15/32, or $4.69 per $1,000 face amount, to 101 20/32.
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Thirty-year bond yields fell to the lowest since December 2008 as U.S. weekly jobless claims exceeded forecasts, stirring speculation that tomorrow’s May employment data may trail estimates. The euro fell to an 11-year low versus the yen, while 10-year yields on German, French, Canadian and Dutch bonds declined to records lows. The Federal Reserve bought $1.8 billion of Treasuries due from February 2036 to August 2041.
“What’s going on is ultimate fear again,” said Joseph Balestrino, a fixed-income strategist for Federated Investors Inc., a Pittsburgh-based money manager that oversees $369.7 billion in an interview on Bloomberg Television’s “Inside Track” with Erik Schatzker. “It’s hard for us to want to buy government bonds at these levels. How low it can go is really hard to say because we’ve never been here before. This is not rational.”
The benchmark 10-year yield fell five basis points, or 0.05 percentage point, to 1.57 percent at 12:34 p.m. New York time. The 1.75 percent security maturing in May 2022 gained 15/32, or $4.69 per $1,000 face amount, to 101 20/32.
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