By Min Zeng NEW YORK (MarketWatch) — The killing of al Qaeda leader Osama bin Laden boosted investors’ appetite for riskier assets, sapping demand for safe-haven Treasurys on Monday. President Barack Obama announced the news late Sunday night, capping a manhunt of nearly a decade for the architect of the September 11, 2011 terror attacks that left 3,000 people dead. Many investors were heartened by the latest development, a milestone of U.S. actions against terror attacks and a major blow to al Qaeda. But some cautioned that the news could incite more terror activities against the U.S. “I think some of the terror premium in bonds maybe lowering as stocks rally on the news,” said Michael Franzese, head of Treasury trading at Wunderlich Securities in New York. “The United States citizens feel some closure and that’s what is reflected in the stocks right now.” Franzese added that “if this news was seven years earlier, it would have had a bigger impact, but as time passes the reactions become smaller.” In recent trading, the benchmark 10-year note UST10Y +0.21% was 5/32 lower to yield 3.316%. Bond yields move inversely to their prices. The 30-year bond UST30Y +0.02% was 7/32 lower to yield 4.420%. Trading was lighter than normal as the U.K. financial markets were shut for a bank holiday, which exaggerated some of the price swings, traders said.

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