Treasury 10-year note yields are reported to be close to their abysmal level in a month prior reports economists posted will reflect U. S. economic growth moderated and consumer prices jumped at the slowest momentum on record.
The yields marked a plunge in April nudged by Europe’s debt crisis which triggered demand for the safest assets and the Federal Reserve reiterated this week its promise to keep interest rates near zero for more time.
“We are still stuck with a pretty large output gap around the world, and the U. S. inflation outlook should continue to provide support for Treasuries,” quoted, Charles Diebel, a fixed- income strategist at Nomura Holdings Inc. in London.
Treasuries marked a return 0.7 percent in April as of yesterday following a loss of 0.9 percent in March, uncovered the indexes formed by Bank of America Merrill Lynch.
The median in a separate Bloomberg survey speculated that the inflation gauge utilized by the Fed that’s tied to consumer expenditure and strips out food and fuel costs jumped at a 0.5 percent annual rate during the first quarter.