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US Yields Fall To 3-Month Lows After U.S. Adds Fewer Jobs

By Dean PopplewellBondsOct 23, 2013 03:06AM ET
www.investing.com/analysis/us-yields-fall-to-3-month-lows-after-u.s.-adds-fewer-jobs-188992
US Yields Fall To 3-Month Lows After U.S. Adds Fewer Jobs
By Dean Popplewell   |  Oct 23, 2013 03:06AM ET
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Treasury 10-year note yields fell to a three-month low after a report showed payrolls climbed less than projected in September, indicating the U.S. economy had little momentum leading up to the federal government shutdown.

European, Canadian and emerging-markets debt also rallied as the payrolls report added to speculation that the Federal Reserve will maintains its U.S. bond-buying program into next year, which has helped to keep borrowing costs low worldwide. The Treasury’s auction of $35 billion of one-month bills attracted demand at close to the pre-government shutdown average seen for the securities this year as investor concern that the U.S. may default ebbed.

“Yields aren’t headed higher, certainly, in the face of this report,” said Bill Gross, the co-chief investment officer at Newport Beach, California-based Pacific Investment Management Co., in an interview on Bloomberg Radio with Tom Keene. “We will grudgingly go lower from this point. We probably won’t be tapering anytime soon.”

The benchmark U.S. 10-year yield fell nine basis points, or 0.09 percentage point, to 2.51 percent at 2.41 p.m. New York time, Bloomberg Bond Trader data showed, the lowest since July 24. The price of the 2.5 percent note due in August 2023 rose 3/4, or $7.50 per $1,000 face amount, to 99 28/32.

The yield touched 3.005 percent on Sept. 6, breaching 3 percent for the first time since July 2011. Its 10-year average is 3.56 percent.

“The 10-year, at 2.50 percent, belongs where it is at the moment,” Gross said.

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US Yields Fall To 3-Month Lows After U.S. Adds Fewer Jobs
 

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US Yields Fall To 3-Month Lows After U.S. Adds Fewer Jobs

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