The Bloomberg U.S. Treasury Bond Index (BUSY) rose 0.4 percent this week. It is up 0.2 percent for February, adding to January’s 1.8 percent surge that was the biggest since May 2012. Federal Reserve Chair Janet Yellen said yesterday the central bank will probably keep trimming its bond purchases, even as policy makers try to determine if recent weakness in the economy is temporary.
“Yields should go down,” said Hideo Shimomura, chief fund investor in Tokyo at Mitsubishi UFJ Asset Management Co., which oversees the equivalent of about $78.4 billion. “Growth is slowing, and it’s not temporary.”
Benchmark 10-year yields were little changed at 2.64 percent as of 9:34 a.m. in Tokyo, Bloomberg Bond Trader data show. The price of the 2.75 percent note maturing in February 2024 was 100 29/32
The Fed is tapering (easing), the economy now worries about China jitters, and 4th quarter GDP was revised, yet again, down. Tax income drops for government, but so does rates. Is this the big one? If so, count Soros as making buck on shorting the market.
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