Treasury Market Rally Is Stronger Than Every Economist Predicted

Friday, 29 Aug 2014 06:45 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

This year’s Treasury market rally has been stronger than every economist surveyed by Bloomberg News predicted.

Ten-year yields that slid to 2.32 percent Thursday were lower than the levels projected by all 66 economists surveyed for their Sept. 30 forecasts.

Even as the Federal Reserve scales back the bond-purchase program it has used to support the U.S. economy, Treasurys are drawing demand as yields in Europe fall to records amid speculation the European Central Bank will increase its efforts to cut borrowing costs. Fighting in Ukraine is spurring investor appetite for the safest securities.

“The bond market still has more room to rally,” said Ali Jalai, a bond trader in Singapore at Scotiabank, a unit of Bank of Nova Scotia, one of 22 primary dealers that trade directly with the Fed. “The consensus is that the ECB will announce some sort of bond-buying program.” In Ukraine, “it seems to be getting bigger and bigger every day,” he said.

 

The median forecast in the Bloomberg survey conducted Aug. 8 to Aug. 13 was for the benchmark to be 2.70 percent by the end of September, while the lowest prediction was 2.40 percent.

Yields are also less than the bottom forecast for year-end, which is 2.43 percent among 68 economists who responded.


© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Here's Why Most Unemployed Americans Don't Get Benefits

Saturday, 22 Nov 2014 10:35 AM

Even though the U.S. job market is gaining strength, there are still a lot of unemployed Americans. Yet only a fraction  . . .

Kudlow: Obama's Big Mistake Is Ignoring High-Skilled Visa Problem

Friday, 21 Nov 2014 22:08 PM

Obama’s executive actions not only usurp powers that are not his, they don’t really solve key immigration problems. . . .

Furchtgott-Roth: Obama's Immigration Edict Is Windfall for Wal-Mart

Friday, 21 Nov 2014 17:47 PM

President Barack Obama's immigration edict is likely to enrich Wal-Mart because the previously undocumented millions wou . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved