BLBG:Treasuries Rise as Slide in Asia Shares Drives Safety Bid
Treasuries rose as a drop in Asian shares drove demand for the relative safety of government debt.
Global investors say the state of the U.S.’s finances is the greatest risk to the world economy, with the government within weeks of reaching its borrowing limit, according to a Bloomberg survey of investors. Global gross domestic product probably grew 2.25 percent in 2012 and will expand 2.4 percent in 2013, Bloomberg polls of analysts show.
“This is a good chance to buy Treasuries,” said Kazuaki Oh’e, a bond salesman in Tokyo at CIBC World Markets Japan Inc., a unit of Canada’s fifth-largest lender. “The decline in Japanese stocks may get people thinking about getting out of riskier assets.”
Ten-year yields fell one basis point, or 0.01 percentage point, to 1.83 percent as of 7:40 a.m. in London, according to Bloomberg Bond Trader. The price of the 1.625 percent note due in November 2022 rose 3/32, or $0.94 per $1,000 face amount, to 98 5/32.
Japan’s Nikkei 225 Stock Average dropped 2.1 percent, falling for a third day. The MSCI Asia Pacific Index of shares slid 0.6 percent.
To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
