Treasury 30-year bonds advanced before a $16 billion sale of the securities as investors sought the safest assets amid concern the euro region’s debt crisis isn’t yet resolved.
Confidence in Prime Minister Shinzo Abe’s stimulus policies is faltering after foreign investors sold $24.2 billion of Japanese shares this year, leaving them the cheapest relative to bonds in 18 months.
Treasuries rose, pushing yields toward a three-week low, as stock losses and violence in Libya bolstered demand for the safest assets.
Treasuries headed for a third weekly gain before a U.S. report that economists said will show manufacturing grew at the slowest pace in 10 months in September.
U.S. five-year notes led the Treasury market toward a monthly gain before a Commerce Department report that analysts said will show U.S. economic growth slowed in the second quarter.
U.S. five-year notes led the Treasury market toward a monthly gain before a Commerce Department report today that analysts said will show U.S. economic growth slowed in the second quarter.
"The market has become complacent about risks as monetary easing continues."
- Satoshi Okumoto on Aug 12, 2014