Treasury’s sale of $7 billion in inflation-indexed 30-year bonds attracted the most demand in a year as speculation that the Federal Reserve’s $85 billion a month of bond purchases will continue through March spurred demand for inflation protection.
The dollar slid to a two-year low versus the euro as weaker-than-forecast economic data and concern that U.S. growth was hurt by a government shutdown added to bets the Federal Reserve will delay slowing stimulus until next year.
Treasury 10-year note yields traded at almost a three-month low as signs of a loss of momentum in global economic growth stoked bets the Federal Reserve will delay slowing its stimulus program until next year.
The Canadian dollar had the biggest two-day slump in four months after the central bank dropped language about the need for future interest-rate rises that had been in place for more than a year, as risks of a worsening economy increased.
New Zealand’s dollar may fall to the weakest in almost six weeks versus the greenback after the currency failed to strengthen past this year’s high set in April, according to JPMorgan Chase & Co., citing technical indicators.
Treasury 10-year note yields fell to the lowest level in six weeks as investors bet the Federal Reserve will maintain monetary stimulus as it awaits a pick-up in economic growth, stoking demand for government debt.
The Treasury Department’s $33 billion sale of two-year notes may draw a yield of 0.354 percent, according to the average forecast in a Bloomberg News survey of seven of the Federal Reserve’s 21 primary dealers.
Treasury 10-year note yields fell to the lowest level in six weeks as investors bet the Federal Reserve will remain accommodative as it awaits a pick-up in economic growth, stoking demand for government debt.