U.S. Treasuries Rise to Near 11 Month High

Treasury 10-year futures rose to the highest in almost 11 months, while Australian bonds gained, as concern global growth is slowing boosted demand for safer assets.

Futures contracts advanced for a sixth day after benchmark U.S. government securities rallied for a fourth straight week. Federal Reserve policy makers may slow interest-rate increases if world growth disappoints, Vice Chairman Stanley Fischer said two days ago. People’s Bank of China Governor Zhou Xiaochuan reiterated the need for “prudent” monetary policy. Australian 10-year yields dropped to the lowest level since June 2013 before a Chinese report that economists say will show imports declined in September.

“We saw some commentary out of China that suggested they’re not prepared to provide any stimulus at this stage,” said Adam Donaldson, head of debt research at Sydney-based Commonwealth Bank of Australia. “Officials are also signaling that perhaps Fed hikes are a little further off and that global-growth concerns might be enough to push out their timing, and all of that is of course very supportive for the bond market.”

Bloomberg

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