U.S. Treasury long bond prices edged higher on Friday in line with gains in euro zone debt after European Central Bank President Mario Draghi said the central bank is prepared to do more to stimulate a sluggish euro zone economy.
U.S. government debt took a cue from European markets, where Draghi’s comments lifted euro zone debt and pushed yields on three of the region’s countries – Ireland, Italy, and Austria – to record lows.
Treasurys rose despite gains in U.S. stocks, which typically draw investors away from debt. Stocks rose as Draghi’s comments and a surprise rate cut from China cheered investors worried about a slowdown in global growth.
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