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11 Mar 2015
US Treasuries supported by ECB’s QE
FXStreet (Mumbai) - The Treasury prices in the US advanced, pushing the yields lower as the massive bond buying program implemented by the European Central Bank (ECB) pushed the yields to record lows in Europe. The relative value of the treasuries is attracting foreign demand.
The US Treasury yields rose sharply on Friday after the surprisingly strong February jobs report. The 10-year yield rose to 2.259%, however, the foreign demand for treasuries coupled with losses in the equity markets pushed the yield lower to the current level of 2.126%. Moreover, the German 10-year yield fell to a record low of 0.23% on Tuesday, the second day of European Central Bank purchases under a EUR 1 trillion program meant to revive inflation and economic growth.
Consequently, investors saw relative value in the US Treasuries, which attracted demand and pushed the yields lower in the US.
The US Treasury yields rose sharply on Friday after the surprisingly strong February jobs report. The 10-year yield rose to 2.259%, however, the foreign demand for treasuries coupled with losses in the equity markets pushed the yield lower to the current level of 2.126%. Moreover, the German 10-year yield fell to a record low of 0.23% on Tuesday, the second day of European Central Bank purchases under a EUR 1 trillion program meant to revive inflation and economic growth.
Consequently, investors saw relative value in the US Treasuries, which attracted demand and pushed the yields lower in the US.