🤓 Just 1 week into 2025: These 7 AI-picked stocks are up +9% eachUnlock Stocks

U.S. Treasuries Rise As Investors Weigh Stimulus

Published 06/28/2013, 11:44 AM
Updated 03/09/2019, 08:30 AM

Treasuries advanced for a third day as investors weighed whether the world’s largest economy is expanding fast enough to prompt the Federal Reserve to taper monetary stimulus.

Benchmark 10-year notes headed for a weekly gain before Fed Governor Jeremy Stein speaks today on monetary policy after New York Fed Bank President William C. Dudley said yesterday policy makers may prolong asset purchases. Chairman Ben S. Bernanke said June 19 the U.S. central bank may reduce bond purchases this year and end them entirely in 2014 if economic growth is in line with central-bank projections.

Buyers Emerged
“The market’s had a very nice recovery as the world realizes that every asset class cannot go down at the same time,” said Craig Collins, managing director of rates trading at Bank of Montreal in London. “The market was overdone to the cheap side regardless of how much Ben Bernanke eases up on the gas pedal. Buyers emerged and this is fueling the bounce.”

Treasury 10-year yields fell two basis points, or 0.02 percentage point, to 2.45 percent at 7:02 a.m. New York time, according to Bloomberg Bond Trader prices. The 1.75 percent note due in May 2023 rose 6/32, or $1.88 per $1,000 face value, to 93 7/8. The yield has declined eight basis points this week.

'Long Way Off'
Dudley said any decision to reduce the pace of the central bank’s asset purchases wouldn’t represent a withdrawal of stimulus and that an increase in the Fed’s benchmark interest rate is “very likely to be a long way off.” He said bond purchases could be prolonged if economic performance fails to meet the Fed’s forecasts.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.