Treasuries rose, following the biggest two-day slump in two years, as yields at the highest level in six months lured investors on prospects the Federal Reserve will discuss a possible extension of purchases.Those invisible bond vigilantes are a fickle lot.
Ten-year notes rallied before the Fed meets next week to review its program to buy $600 billion of U.S. debt through June. The yield advantage of 10-year Treasuries over Japanese bonds increased to the widest in five months, boosting the allure of U.S. assets. Treasuries tumbled the past two days, pushing 10- year yields up by 35 basis points, the most since Sept. 19, 2008, when they fluctuated following the bankruptcy of Lehman Brothers Holdings Inc.
08 December 2010
More Invisible Bond Vigilantes
Treasury yields fell today, after rising sharply on news of the Obama-Republican tax deal:
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