Gaillo
23rd September 2011, 05:54 AM
Hold on for the ride folks, the bloodbath isn't over yet:
http://www.marketwatch.com/story/treasurys-gain-as-stocks-head-lower-again-2011-09-23-839350
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) — Treasury prices rose Friday, pushing yields further down to record lows, as equities fell in Europe and U.S. stock futures pointed to additional selling on Wall Street on worries about European banks as well as continued fears that the Federal Reserve sees the economy slowing.
These factors boosted interest in U.S. debt as an alternative.
Yields on 10-year notes 10_YEAR -0.70% , which move inversely to prices, fell 5 basis points to 1.68%, setting a new low. A basis point is 1/100th of a percentage point.
Central banks need to take action
If the Group of 20 doesn't take action to restore investor confidence soon, deleveraging will continue and markets remain volatile.
Yields on 30-year bonds 30_YEAR -1.43% *fell 6 basis points to 2.75%, also extending an impressive move. In the last two days, the yield has fallen by the most since the height of the credit crisis in late 2008. Read about recent gains for 30-year bonds.
Yields on 2-year notes 2_YEAR -1.93% declined 2 basis points to 0.19%.
“If risk assets here and abroad are being dumped, the money has to go somewhere,” said David Ader, head of U.S. government bond strategy at CRT Capital Group.
Investors were also looking to international policy makers for solutions to Europe’s debt crisis a day after worries over world growth prospects triggered a global equity rout. An unexpected joint statement late Thursday from finance ministers and central-bank governors from the Group of 20 major economies only briefly lifted hope before the statement was deemed lacking in specifics and a time frame for acton.
Looks like everyone is looking for a .gov/central bank bailout as a "fix" for the problem, as if that's the new norm! :o
http://www.marketwatch.com/story/treasurys-gain-as-stocks-head-lower-again-2011-09-23-839350
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) — Treasury prices rose Friday, pushing yields further down to record lows, as equities fell in Europe and U.S. stock futures pointed to additional selling on Wall Street on worries about European banks as well as continued fears that the Federal Reserve sees the economy slowing.
These factors boosted interest in U.S. debt as an alternative.
Yields on 10-year notes 10_YEAR -0.70% , which move inversely to prices, fell 5 basis points to 1.68%, setting a new low. A basis point is 1/100th of a percentage point.
Central banks need to take action
If the Group of 20 doesn't take action to restore investor confidence soon, deleveraging will continue and markets remain volatile.
Yields on 30-year bonds 30_YEAR -1.43% *fell 6 basis points to 2.75%, also extending an impressive move. In the last two days, the yield has fallen by the most since the height of the credit crisis in late 2008. Read about recent gains for 30-year bonds.
Yields on 2-year notes 2_YEAR -1.93% declined 2 basis points to 0.19%.
“If risk assets here and abroad are being dumped, the money has to go somewhere,” said David Ader, head of U.S. government bond strategy at CRT Capital Group.
Investors were also looking to international policy makers for solutions to Europe’s debt crisis a day after worries over world growth prospects triggered a global equity rout. An unexpected joint statement late Thursday from finance ministers and central-bank governors from the Group of 20 major economies only briefly lifted hope before the statement was deemed lacking in specifics and a time frame for acton.
Looks like everyone is looking for a .gov/central bank bailout as a "fix" for the problem, as if that's the new norm! :o