Treasuries rose, pushing the two-year note yield to a record low, as signs of stalled economic growth in the U.S. and a widening sovereign debt crisis in Europe boosted demand for the perceived safety of U.S. debt. Standard & Poor's cut the nation's AAA rating to AA+ after markets closed yesterday.
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.
Treasuries dropped, pushing 30-year yields to a two-year high, after minutes of the Federal Reserve’s last meeting showed policy makers were “broadly comfortable” with a plan to curtail bond purchases.
Treasuries advanced, pushing 10-year note yields to a three-month low, after more Americans than projected filed applications for unemployment benefits last week in another sign the labor market may be slowing.
A drop in the euro to near its lowest level in four years means Canadian dollars and Swiss francs are accounting for record shares of global bond sales as investors flee turmoil in Europe’s government debt market.
When Moody’s Investors Service greeted the start of summer by lowering the credit ratings on 15 of the world’s largest banks, citing the increased chance of “outsized losses,” major newspapers dutifully reported the event with headlines such as “Move Adds Pressure to Borrowing Costs,” “Downgrades Add to Market Jitters” and “Mark of Greater Risk.”
Treasuries rose for the first time in three days amid signs Europe’s deepening debt crisis is weighing on growth in the world’s largest economies, burnishing the allure of U.S. government securities’ relative safety.