Even if the scale of U.S. Treasury bonds in circulation from three years ago to 4.4 trillion U.S. dollars soared to 7.96 trillion U.S. dollars today, even though researchers are still issued by major investment banks report is expected by the end of the 10-year bond yields rose to at least 4.14%, Current U.S. national debt is still preferred destination of global investors, hedge option risk preference is very strong even Wall Street investment banks also joined the army in the purchase of government bonds surging.
U.S. 10-year bond yields in the past month have plummeted 37 basis points. As one night this week, the yield of 3.21%, earlier hit a low of 3.15%.
Federal records show that on May 26 this year so far, including Goldman Sachs, JP Morgan 18 Wall Street, including major U.S. treasury bonds held by brokers total of 23.2 billion U.S. dollars from the year rose to 37.1 billion U.S. dollars. At the same time, these firms holding high-yield corporate bonds dropped significantly in the total amount of 17 percent to 211.1 billion U.S. dollars.
European sovereign debt fears dominated the recent rise in market risk aversion, while the United States was not a cause of great satisfaction out of macro-economic data reveals the risk of economic recession or slowdown in the market over-amplification, the combination led to expansion of the panic, institutional and individual investors into the dollar and bond funds will strong.
In addition to hedging demand, the revenue bonds to ensure consideration is one of many recent investors. Such as the three major U.S. stock indexes the Dow in April from the year down nearly 10% of the high points, the spread of market pessimism, but the bond market is expected to slow due to economic growth and declining inflation pressures seem alive. In particular, in April this year, U.S. consumer price index for 1 year decreased 0.1% for the first time, the market from before the moment to worry about future inflation fears of deflation, the major investment banks also have the 10-year Treasury yield is expected by the end of 2010 lowered from 4.14% to 4.25% level.
Lost in Spain “AAA” debt rating and said the poor state of Hungary, the euro-dollar exchange rate is one stroke below the psychologically important level of 1.20, the exchange rate hit 1.1877 Monday the 4-year low, making the influx of investors and further the bond market.
U.S. Treasury data show, a month to the global total amount of funds to buy dollar assets from the previous 47.1 billion U.S. dollars soared to 140.5 billion U.S. dollars, highlights the investor pessimism on the global economy growing.
But despite the recent U.S. Treasury once again sought after by the market, there are still some institutions holding bonds bearish view of the future.