Treasury Yields Near 17-Month Low; Bullard Considers Purchases

Think U.S. currency will be devalued? The Federal Reserve has no choice but to inflate away the country’s debt as this article plainly shows. Got Gold Or Silver?

Treasury Yields Near 17-Month Low; Bullard Considers Purchases

Aug. 18 (Bloomberg) — Treasury 10-year yields were near a 17-month low after Federal Reserve Bank of St. Louis President James Bullard said the central bank may need to buy more Treasuries if inflation continues to slow.


The Fed plans to buy Treasuries due from August 2016 to August 2020 tomorrow, after purchasing $2.551 billion of securities yesterday, to hold borrowing costs down. There has been “disinflation,” Bullard, who votes on monetary policy this year, told the Wall Street Journal yesterday. “We should have a plan in place to take action if it moves lower.” German 30-year bond yields reached a record low and Japanese 10-year yields dropped to their lowest in seven years.


“There is still concern on the strength of the economy, and the risk is that the Fed will expand its balance sheet with further purchases, and that’s giving Treasuries support,” said Orlando Green, assistant director of capital markets strategy at Credit Agricole Corporate & Investment Bank in London.

The 10-year note yield fell two basis points to 2.61 percent as of 6:38 a.m. in New York, according to BGCantor Market Data. The 2.625 percent security due August 2020 rose 7/32, or $2.19 per $1,000 face amount, to 100 3/32. Yields dropped to 2.56 percent on Aug. 16, the lowest since March 2009.



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