Investors bought the biggest share in a year of an auction of Treasury two-year notes as demand for the securities climbed less than two weeks after a partial government shutdown raised concern of a potential U.S. default.
The groundwork for preventing a U.S. Treasury default from causing a cataclysmic breakdown of the plumbing of the global financial system was laid after the last debt-ceiling crisis in 2011 -- and is still a work in progress.
Inflation will stabilize without sliding into deflation after the Federal Reserve’s program to spur growth by purchasing $600 billion of Treasuries concludes tomorrow, according to Nomura Holdings Inc.’s George Goncalves.
A $16 billion auction of U.S. five- year inflation-indexed notes drew the highest yield in more than three years amid bets the economic recovery is strong enough for the Federal Reserve to begin withdrawing monetary stimulus.
The government’s $16 billion sale of five-year inflation-linked notes sold at the highest yield since 2010 amid bets that the economic recovery is strong enough for the Federal Reserve to begin withdrawing monetary stimulus.
A drop in the price of lumber may signal the yields on the 10-year Treasury note will fall as the Federal Reserve ends its $600 billion Treasury-purchase program in June, according to Nomura Holdings Inc.
Treasury yields touched two-year highs as the U.S. employment market strengthened and minutes of the Federal Reserve’s last meeting showed policy makers supported slowing the pace of asset purchases this year.