Treasuries Hold Gain Amid Technical Signal Before Price Report Treasuries maintained a gain from yesterday as a technical indicator signaled that the securities had dropped too rapidly and before U.S. data forecast to show inflation was near an all-time low. Ten-year note yields were little changed following their first decline in eight days before Federal Reserve Bank of New York President William C. Dudley speaks to reporters today. The Standard & Poor’s GSCI Spot Index (SPGSCI) of 24 commodities is set for its biggest quarterly decline in a year on concern a credit squeeze in China will weigh on prices, slowing global inflation. “Consumer prices won’t rise much globally,” said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees more than $72 billion in Tokyo. “If prices don’t rise, then the bond market is subject to a correction. Yields will struggle to advance.” The yield on the benchmark 10-year note was little changed at 2.53 percent as of 9:59 am. in Tokyo. The price of the 1.75 percent security due in May 2023 traded at 93 7/32, according to Bloomberg Bond Trader prices. The 14-day relative-strength index for 10-year yields climbed to 79.8 on June 25 and remained at 71.4 today. A level above 70 shows yields may be set to change direction. U.S. data will probably indicate today that the core personal-consumption-expenditure price index rose to 1.1 percent in the 12 months through May, the median forecast of economists surveyed by Bloomberg News showed. The Fed’s preferred measure of inflation was at about the same level in April, matching the smallest increase in records going back to 1960. The yield on Japan’s benchmark 10-year note dropped three basis points to 0.835 percent, according to Japan Bond Trading Co., the nation’s largest interdealer debt broker.
Posted on: Thu, 27 Jun 2013 10:19:42 +0000
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