Treasuries gained, pushing 30-year bond yields to a 15-month low, as rising tension in Ukraine and speculation the European Central Bank will buy bonds overshadowed data showing the U.S. economy strengthened.
A gauge of government bonds around the world approached a record high on speculation the ECB is preparing further moves to spur a slumping economy. Ukraine said actions by Russia amount to an invasion. Treasuries rallied even as data showed the U.S. economy grew more than initially estimated in the second quarter. The U.S. sold $29 billion of seven-year notes at the lowest yield since May.
“U.S. yields are being driven by global risks rather than domestic,” said Stanley Sun, a New York-based strategist at Nomura Holdings Inc., of 22 primary dealers that trade with the Federal Reserve, said in a telephone interview. “As long as European yields keep going lower and European data and news continue to outweigh U.S. data, these low yields don’t look like they’re going to change any time soon.”