AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 127.04 No Change ▼ 0.00 (0%)
BOP 6.67 No Change ▼ 0.00 (0%)
CNERGY 4.51 No Change ▼ 0.00 (0%)
DCL 8.55 No Change ▼ 0.00 (0%)
DFML 41.44 No Change ▼ 0.00 (0%)
DGKC 86.85 No Change ▼ 0.00 (0%)
FCCL 32.28 No Change ▼ 0.00 (0%)
FFBL 64.80 No Change ▼ 0.00 (0%)
FFL 10.25 No Change ▼ 0.00 (0%)
HUBC 109.57 No Change ▼ 0.00 (0%)
HUMNL 14.68 No Change ▼ 0.00 (0%)
KEL 5.05 No Change ▼ 0.00 (0%)
KOSM 7.46 No Change ▼ 0.00 (0%)
MLCF 41.38 No Change ▼ 0.00 (0%)
NBP 60.41 No Change ▼ 0.00 (0%)
OGDC 190.10 No Change ▼ 0.00 (0%)
PAEL 27.83 No Change ▼ 0.00 (0%)
PIBTL 7.83 No Change ▼ 0.00 (0%)
PPL 150.06 No Change ▼ 0.00 (0%)
PRL 26.88 No Change ▼ 0.00 (0%)
PTC 16.07 No Change ▼ 0.00 (0%)
SEARL 86.00 No Change ▼ 0.00 (0%)
TELE 7.71 No Change ▼ 0.00 (0%)
TOMCL 35.41 No Change ▼ 0.00 (0%)
TPLP 8.12 No Change ▼ 0.00 (0%)
TREET 16.41 No Change ▼ 0.00 (0%)
TRG 53.29 No Change ▼ 0.00 (0%)
UNITY 26.16 No Change ▼ 0.00 (0%)
WTL 1.26 No Change ▼ 0.00 (0%)
BR100 10,010 Increased By 126.5 (1.28%)
BR30 31,023 Increased By 422.5 (1.38%)
KSE100 94,192 Increased By 836.5 (0.9%)
KSE30 29,201 Increased By 270.2 (0.93%)

US Treasury yields fell to the lowest levels since February on Thursday as falling oil and stock prices increased demand for safe-haven debt amid concerns about global growth. British and German sovereign debt yields fell to record lows, driven by concerns about Britain's referendum on European Union membership later this month and the European Central Bank's commencement of its corporate bond purchase program.
Those factors increased the attractiveness of Treasuries, which offer far higher yields than European, Japanese and other major sovereign bonds. "It's a demand for securities and yield," said Tom Tucci, head of Treasuries trading at CIBC in New York. The demand helped the US government sell $12 billion in 30-year bonds for lower yields, the final sale of $56 billion in coupon-bearing supply this week. The bonds sold at a high yield of 2.475 percent, less than 5 basis points above the record low.
"It was a very solid auction," said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York. "It doesn't show any investor hesitation at lower yields, which is really a factor of falling global interest rates." Thirty-year bonds ended up 23/32 in price to yield 2.48 percent, the lowest level since February 11. Benchmark 10-year notes gained 8/32 in price to yield 1.68 percent, the lowest since February 24. German 10-year bund yields, by comparison, dropped to a record low 0.023 percent on Thursday.
The US yield curve between two-year and 10-year notes flattened, which is sometimes viewed as an indicator of weakening growth. The curve flattened to 89 basis points, its lowest since 2008. Investors this week have shown a preference for longer-dated bonds, after indirect bidders reduced participation in a $24 billion sale of three-year notes on Tuesday.
The Treasury sold $20 billion in 10-year notes to record demand from investment funds, foreign central banks and other indirect bidders on Wednesday. Traders have pushed back rate-hike expectations to September at the earliest, after last week's jobs report for May showed that employers added only 38,000 positions in the month, the smallest gain since September 2010.

Copyright Reuters, 2016

Comments

Comments are closed.