Treasuries Rise Before GDP Report, Bernanke Speech Tomorrow BusinessWeek
Aug. 25 (Bloomberg) -- Treasuries rose, snapping a three- day decline, before a government report tomorrow on U.S. gross domestic product and Federal Reserve Chairman Ben S. Bernanke’s speech to central bankers in Jackson Hole, Wyoming.
Benchmark 10-year yields were 30 basis points away from a record low, reflecting demand for the safest securities as the economy slows. Speculation that Bernanke will discuss ways to maintain the expansion is growing as traders recall that the Fed chief used the summit a year ago to announce the central bank would “do all that it can” to spur growth. The Fed went on to implement a $600 billion debt-purchase plan in November.
“If he does nothing, that will be a problem for bonds,” said Kazuaki Oh’e, a debt salesman in Tokyo at CIBC World Markets Japan Inc., a unit of Canada’s fifth-largest lender. “He may not announce a round of debt purchases, but he may use money from redemptions to buy longer-term bonds.”
