Wednesday, 19 September 2012 10:43
SINGAPORE: US 10-year Treasuries rose on Wednesday, getting some respite from a recent sell-off that came as the Federal Reserve's new monetary stimulus bolstered inflation expectations and whetted investor appetite for risky assets.
Ten-year Treasuries rose 4/32 in price to yield roughly 1.798 percent, down 1 basis point from late US trade on Tuesday and below a four-month high around 1.89 percent hit on Friday.
The 10-year notes have regained some footing after Friday's sharp sell-off, which took place a day after the Fed said it would pump $40 billion into the US economy each month until it saw a sustained upturn in the jobs market.
In the wake of the Fed's decision to embark on aggressive monetary stimulus, 10-year Treasuries may retreat further over the next several months, said Tomohisa Fujiki, interest rate strategist for BNP Paribas Securities in Tokyo.
"Previously, we had expected the 10-year yield to come in at 1.35 percent ...