US long-term treasuries are on the rise this morning as investors look to hedge their exposure to equity markets amid ongoing euro zone concerns. The benchmark 10-year note is up 12/32 dropping the yield to 3.493. The 30-year note is up 18/32 reducing the yield to 4.391. Bond prices and yields move in opposite directions.
Investors are flocking to the safety of US treasuries as uncertainty over the long-run impact of the EU/IMF bailout package including grueling austerity plans for periphery economies is once again the focus of the marketplace. Equity markets are substantially lower in the European session as the banking sector suffers from exposure to government debt. Moreover, Portugal recently announced bipartisan agreement on new austerity measures which will use tax hikes and wage cuts to cut the budget deficit to a proposed 4.6% in 2010.
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