Treasuries Face Gain while the Production Falls
Submitted by Antonio Carretero on Thu, 09/01/2011 - 03:21
Inspite of the fall in the output in European nations, the treasuries of the nations have witnessed gain, which surpassed the records of the past two years. The decline in the production in the month of August is expected to result in declining the rate of growth in the European economy.
Various market analysts have stated that the figures reveal a fall in the production in the US and Europe and also, a decline in the employment rates. The treasuries have made a 2.8% of expenditure in order to pay out the shareholders their share of profit. The rise is claimed to be the highest after December 2008.
The yield on the long-term maturity bonds witnessed a decreased in the basis points to 2.2%, reveals the Bloomberg Bond Trader figures. The yield fell to 57 basis points in July and had dropped to a mark of 70 basis points in the month of December, 2008.
As per Michael Leister, a fixed- income strategist at WestLB AG in London, “Clearly the risks are to the downside and the flight to quality may extend further. We believe that yields on both 10-year Treasuries and 10-year bunds are likely to dip below the 2 percent level again”.









