Tuesday, 18 September 2012 14:58
LONDON: US Treasury prices rose on Monday as a recent sharp sell-off lured investors back into the cheapened market but yields were seen creeping higher towards year-end.
US 10-year yields fell 3 basis points to 1.82 percent, while 30-year yields were little changed at 3.03 percent.
"We had seen a huge rally in risk markets up to the end of last week. We seem to have taken a bit of a pause for breath now as the market assesses the impact of ECB and Fed measures," RIA Capital Markets bond strategist Nick Stamenkovic said.
The Federal Reserve launched another aggressive stimulus programme last week, while the European Central Bank earlier this month said it would buy unlimited amounts of bonds of struggling euro zone sovereigns, if countries asked the euro zone rescue fund for financial help first.
Despite the rebound in bond prices, Stamenkovic still expected 10-year yields to end the year at around ...