Treasury yields at lowest since 2013 show bets on Fed hike fade

Treasuries logged their biggest two-week gain since February as traders wagered that the Federal Res
PHOTOGRAPHER:

Treasuries logged their biggest two-week gain since February as traders wagered that the Federal Reserve will forgo raising interest rates for months to come.

Benchmark yields sank to the lowest since 2013, driven by investors seeking shelter in government debt amid global growth concerns and the threat of instability when the U.K. votes June 23 on membership in the European Union. The “Leave” campaign took a 10 percentage-point lead in a poll published Friday.

With more than $8 trillion of sovereign debt carrying negative rates, the appeal of U.S. obligations is growing. Ten-year U.S. notes yield more than securities of all but seven developed countries, data compiled by Bloomberg show.

“The more you have negative rates in the rest of the world, the more attractive Treasuries look,” said Jabaz Mathai, a U.S. rates strategist in New York at Citigroup Inc., one of the 23 primary dealers that trade with the Fed.

The benchmark 10-year note yield fell six basis points this week, or 0.06 percentage point, to 1.64 percent, according to Bloomberg Bond Trader data.

Categories: Business, News

Leave a Reply