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U.S. Treasuries Heading for Another Weekly Gain

Treasuries headed for a fifth weekly gain, the longest winning streak since January, on bets a slowdown in global growth will delay the first U.S. interest-rate increase since 2006.

Benchmark 10-year yields fell toward the lowest since May 2013 after Federal Reserve Bank of St. Louis President James Bullard said the central bank should consider delaying the end of bond purchases to halt a decline in expected inflation. An index of global bonds was near a record high. Notes snapped a seven-day rally yesterday after U.S. reports showed manufacturing expanded and jobless claims declined.

“We’re just going to have to live with these low yields,” said Roger Bridges, a global interest-rate and currency strategist in Sydney at Nikko AM Ltd., which oversaw $168 billion as of June 30. “Before yields start going up again in a major, sustainable way, we’ve got to see growth pickup around the world.”

Bloomberg [1]

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