BLBG:Treasuries Hold Gain as European Economic Data Increases Demand for Safety
Treasuries held a gain from last week as reports showing the euro-area economy is struggling to recover increased demand for the safest assets.
Two-year yields approached the lowest level in two weeks after data showed European services and manufacturing output declined in February more than economists estimated. China reduced its economic growth target to 7.5 percent from an 8 percent goal in place since 2005, Premier Wen Jiabao said today.
The U.S. 10-year yield fell one basis point to 1.97 percent at 10:01 a.m. London time, according to Bloomberg Bond Trader prices. The 2 percent security due February 2022 gained 3/32, or 94 cents per $1,000 face amount, to 100 10/32. The yield fell five basis points, or 0.05 percentage points, on March 2.
The two-year yield was little changed at 0.27 percent, matching the lowest since Feb. 16.
A euro-area composite index based on a survey of purchasing managers in the services and manufacturing industries dropped to 49.3 from 50.4 in January, London-based Markit Economics said today. That’s below an initial figure of 49.7 published on Feb. 22. A reading below 50 indicates contraction.
To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
