Treasury two-year yields extended declines to a record low on speculation four months of job losses in the U.S. will lead the Federal Reserve to increase bond purchases when policy makers meet next month.
A Labor Department report that 95,000 positions were lost in September “put the seal” on deliberations at the Fed on whether to boost bond purchases, Jan Hatzius, the New York-based chief U.S. economist at Goldman Sachs Group Inc., wrote in an e- mail to clients. The central bank will announce about $500 billion of purchases through the spring or summer of next year, he wrote.
The two-year note yielded 0.35 percent as of 8:56 a.m. in Tokyo, according to BGCantor Market Data. The rate dropped to a record low of 0.335 percent earlier today. The 0.375 percent security due in September 2012 traded at a price of 100 1/32.
Sumber : BLOOMBERG.COM