Treasuries rose, with long-term notes and bonds holding their place as the world’s best- performing government securities, after European finance ministers failed to agree on a Greek debt-reduction package.
U.S. government securities due in 10 years and longer returned 2.2 percent in the past month, the best performance among securities in 144 indexes tracked by Bloomberg and the European Federation of Financial Analysts Societies. The gains include interest payments and the effects of currency changes against the dollar. Euro-area finance ministers plan another meeting next week after more than 11 hours of inconclusive talks, boosting demand for the relative safety of U.S. debt.
“There’s another postponement of the Greek bailout, and Treasuries will benefit,” said Will Tseng, who invests in U.S. bonds at Taipei-based Shin Kong Life Insurance Co., which has the equivalent of $55.5 billion in assets. “There’s less confidence that Greece will receive the money. Asian investors are already buying, and European and U.S. investors might make the same decision.”
U.S. 10-year yields declined two basis points, or 0.02 percentage points, to 1.65 percent as of 2:14 p.m. in Tokyo, according to Bloomberg Bond Trader prices. The price of the 1.625 percent security due in November 2022 advanced 6/32, or $1.88 per $1,000 face amount, to 99 26/32.
Japan’s 10-year rate was little changed at 0.735 percent. It has been in a range of 0.725 percent to 0.785 percent this month.
TIPS Sale
The U.S. is scheduled to sell $13 billion of 10-year Treasury Inflation Protected Securities today. It also plans to announce the sizes of 2-, 5- and 7-year notes being auctioned next week.
U.S. government securities fell yesterday as Federal Reserve Chairman Ben S. Bernanke said an agreement to reduce long-term U.S. deficits may remove an impediment to economic growth and crimp haven demand.
The Thomson Reuters/University of Michigan consumer sentiment index probably rose to 84.5 in November from 82.6 in October, according to a Bloomberg News survey of economists before the report at 9:55 a.m. New York time today.
The figure will be the final reading for November. The group issued a preliminary number of 84.9 earlier this month. The index hasn’t been higher than 84 since July 2007. Separate reports today will probably show growth in an index of leading economic indicators slowed and initial claims for jobless insurance declined, based on the Bloomberg surveys.
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
