While liquidity from central banks and investigations by regulators may be preventing manipulation of the London interbank offered rate, the market would benefit from more transparency, according to Pacific Investment Management Co.’s Tony Crescenzi.
The Federal Reserve will likely begin a program of bond buying with about $500 billion in purchases and leave it open-ended for “some chance of doing more,” according to Pacific Investment Management Co.’s Tony Crescenzi.
The worst performance by Treasuries since the second quarter of 2009 reflects prospects for faster U.S. economic growth rather than concern that rising budget deficits will drive investors away from government debt.
Treasury 30-year bonds fell for the first time in four days on speculation investors who bet the Federal Reserve would buy longer-maturity debt to boost the economy are poised to exit those trades for a profit.
Japan shares rose for a second day, with the Nikkei 225 Stock Average posting its biggest gain in a month, after European Central Bank President Mario Draghi said policy makers will do whatever it takes to preserve the euro.
Treasuries rose for a second day after the U.S. economy added fewer jobs than forecast last month, prompting investors to increase bets the Federal Reserve will resort to a third round of asset purchases.