Thursday, 23 August 2012 20:26
NEW YORK: US government debt prices rose on Thursday as traders piled on bets on more stimulus from the Federal Reserve, whose minutes from its policy meeting showed action might be imminent in a bid to reduce unemployment.
Weaker Chinese factory data and worries about a review of Greece's finances also spurred safe-haven bids for bonds. Benchmark yields fell to their lowest levels in more than a week after touching a three-month high earlier this week.
"It's all on the back of the FOMC minutes saying it's ready to provide more stimulus 'fairly soon,'" said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York.
However, a top Fed official said the US economy, although far from robust, does not need further Fed stimulus.
"Going along at this slow pace is not enough to justify gigantic action," St. Louis Federal Reserve President James Bullard told CNBC television in an interview.
The minutes from ...