With a further reported fall in the Asian stocks and the rising concerns over the sloth in the recovery in the US, the treasuries in the nation surged bolstering the need of securing the Government debit.
Ahead of the G-20 meet this weekend, the 10 year yield hit a month’s low. The leaders are likely to consider each other’s opinions over the stringency in the regulations in the monetary sector.
The Federal Reserve is likely to keep the key rates around zero in view of the rising concerns over the European crisis and the weakening in the consumer confidence.
Masahide Tanaka, a senior strategist in Tokyo at Mizuho Trust & Banking Co., said the economy is going to suffer the brunt of the previous stimulus packages issued.
“The gloomy economic outlook will encourage capital inflows into safer assets such as government bonds”, he added.
The treasury 10-year benchmark yield dipped 2 basis points to 3.12%. As per the data released by BGCantor Market Data, the security gained 5/32 or $1.56 per $1,000 face amount due on May 20. MSCI World Index lost 0.2% today.
The G-20 representatives will be discussing concerns over the European debt crisis, thereby ensuring development and improvement in the global economy.