Us 10 Year Treasury Yields Hit A 60 Year Low
Worried about Europe
debt
The crisis will impact the global economy, and investors will begin to pfer funds to safe investment, resulting in an increase in the US Treasury bond market and a 10 year treasury bond yield at a low level of at least 60 years.
The US stock market is currently down by more than 2.5%. The most secure treasury bond is favored by investors. No one dares to sell treasury bonds before the end of the week.
The resignation of Stark, member of the Executive Committee of the European Central Bank, raised concerns about investors' debt problems in the eurozone.
Stark resigned for opposing the ECB's purchases of treasury bonds, Reuters reported.
Capital Economics, American economist Paul Dales, said: "the risk of European default or bank bankruptcy is real, which may lead to a global financial crisis similar to the collapse of Lehman Brothers.
crisis
"
The price of the 10 - year treasury bonds rose by 19/32 points, and the yield fell from 1.91% on Thursday to 1.91%, or at least the lowest since the Second World War.
Jim Vogel, head of bond research at FTN financial company in Memphis, said: "there are many bad news in Europe today. The stock market has been hit hard. The Treasury bond market is buying too much this morning. When we want to buy some more treasury bonds, we find that prices have gone up a lot.
The future trend of treasury bond market has only one direction and upward trend.
National debt
Rate of return
The decline has left some worried that Treasury bonds issued next week will be hard to sell.
The US Treasury will issue $66 billion treasury bonds next week, which will issue $32 billion in 3 year treasury bonds on Monday, and 21 billion dollars in 10 year treasury bonds on Tuesday, and a 13 billion dollar 30 year bond on Wednesday.
Some investors say that the Treasury's new treasury bonds may not be able to sell at such low yields.
Because the market expects the Federal Reserve to announce the new Treasury bond purchase plan at the meeting from 20 to 21 September, the long term treasury bonds have been strong in recent years.
Federal Reserve Chairman Bernanke's speech on Thursday was interpreted as the door to the implementation of the new quantitative easing policy.
Bernanke said the Fed will spare no effort to promote economic development.
The 30 - year treasury bonds rose by 1-10/32 points, and the yield fell from 3.31% on Thursday to 3.25%.
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