BLBG:Treasuries Rise as Asian Stocks Fall, on Concern Europe Crisis Will Spread
Treasuries rose for the first time in four days as Asian stocks dropped and on concern Europe’s debt crisis is spreading, enhancing demand for the relative safety of U.S. securities.
Stronger job figures that economists expect today won’t be enough to reverse the negative economic influence of slowing European growth, according to Bank of America Merrill Lynch, one of the 21 primary dealers that underwrite the U.S. debt. Demand for safety helped Treasuries due in 10 years or more return 29 percent in the past year, the most among 144 government bond indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies.
“The rally will continue,” said Hiromasa Nakamura, a senior investor at Mizuho Asset Management Co. in Tokyo, who helps oversee the equivalent of $42.6 billion at the unit of Japan’s second-largest bank. “Personal income is weakening. Home prices continue to slow. These are all negative for consumer spending” in the U.S., he said.
Ten-year rates (USGG10YR) fell two basis points to 1.98 percent as of 1:51 p.m. in Tokyo, according to Bloomberg Bond Trader prices. The 2 percent security due in November 2021 rose 1/8, or $1.25 per $1,000 face amount, to 100 6/32.
The MSCI Asia Pacific Index of shares fell 1.3 percent, the most since Dec. 19.
To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net
To contact the editor responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net
