Treasuries Tumble to Extend Rout on Growth in Europe, China Treasuries fell, extending their steepest rout in 35 years, following signs of economic growth in Europe and China. Euro-area factory output expanded at a faster pace than initially estimated in August. An index based on a survey of purchasing managers in the manufacturing industry increased to a 26-month high of 51.4 from 50.3 in July, London-based Markit Economics said yesterday. That’s above an estimate of 51.3 published on Aug. 22. A reading above 50 indicates growth. In China, reports showed on Sept. 1 and yesterday that the manufacturing sector in the world’s second-largest economy expanded last month. U.S. 10-year yields rose four basis points, or 0.04 percentage point, to 2.83 percent at 9:47 a.m. in Tokyo, based on Bloomberg Bond Trader data. The price of the 2.5 percent note due August 2023 fell 3/8, or $3.75 per $1,000 face amount, to 97 5/32. Treasuries opened in Asia after being closed worldwide yesterday in observance of Labor Day in the U.S. Bank of America Merrill Lynch’s U.S. Treasury Index is on course to fall 4.7 percent this year, which would be the biggest annual loss since the gauge began in 1978.
Posted on: Tue, 03 Sep 2013 10:14:52 +0000
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