Wednesday, 29 August 2012 00:49
NEW YORK: US Treasuries prices rose on Tuesday as traders anticipated hints from Federal Reserve Chairman Ben Bernanke later this week of possible further monetary stimulus to help the economy.
Bets on a third round of "quantitative easing" through large-scale bond purchases, nicknamed QE3, pushed benchmark yields to three-week lows earlier on Tuesday after they touched a three-month high last week.
"It appears likely that the market will be spending the fall with a significant probability of QE3 priced in," said Hans Mikkelsen, credit strategist at Bank of America Merrill Lynch in New York.
News that Spain's most economically vital region Catalonia was requesting aid and fears the euro zone's fourth biggest economy might soon need a full-blown bailout also fed safe-haven bids for US government debt, traders and analysts said.
Benchmark 10-year notes were trading 8/32 higher in price to yield 1.63 percent, down from 1.65 percent late Monday, while 30-year bonds were ...