U.S. 10-Year Yield Falls Almost to Record on Haven Demand


16/06/2012 10:13 AST  Bloomberg

Treasury 10-year note yields fell to within a quarter-percentage point of the record low reached two weeks ago as investors sought safety amid Europe’s debt crisis and signs U.S. economic growth is slowing.

U.S. government securities rallied as drops in industrial production and consumer prices boosted bets the Federal Reserve will add more stimulus to sustain economic growth. Volatility climbed to the highest since December as investors await the Greek election tomorrow amid speculation central banks will take steps to provide liquidity to financial markets.

“Europe is still a mess, there has been relatively disappointing U.S. data and there is increasing chatter about the possibility of the Fed doing some sort of further easing,” said Jay Mueller, who manages about $3 billion of bonds at Wells Fargo & Co. in Milwaukee. “There are a lot of wild cards and a lot of uncertainty domestically and abroad, and until something changes, Treasuries can stay near these levels.”

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