Treasuries Surge on Jobs-Growth Stall, Outlook for More Stimulus From Fed
Treasury 30-year bond yields fell to the lowest since January 2009 after a government report showed no jobs were added in August, reinforcing concern the U.S. economy has slowed, which may prompt additional stimulus by the Federal Reserve. U.S. 10-year yields fell below 2 percent as U.S. employment data yesterday gave the weakest reading since September 2010. Minutes of the Fed’s Aug. 9 meeting released Aug. 30 showed policy makers suggested the central bank could offer more support for the economy through focusing on purchases of longer- term securities. Ten-year notes gained for the fifth time in six weeks before the Fed releases its summary of regional economic conditions on Sept. 7. Fed officials discussed a range of tools, including buying more government bonds to bolster the economy without coming to an agreement on what they might do next should the economy weaken further. They will more fully debate their options when they gather Sept. 20-21 for a two-day meeting that was originally scheduled to last one day.
No comments:
Post a Comment