Where To Get Best Bond Yields

February 25, 2012 by staff 

Where To Get Best Bond Yields, U.S. Treasury debt prices
rose on Friday as lingering worries about Europe’s
debt crisis and concerns over soaring oil prices stoked
safe-haven demand for bonds, giving longer-dated issues their
best week in four weeks.
Still Treasury yields are stuck in the middle of a range
that has held since early November after the benchmark 10-year
yield touched its highest level in about month this week in
reaction to Greece finally receiving a 130-billion-euro bailout
to avert a chaotic default.
The bond market sell-off quickly faded as the optimism over
Greece’s second rescue package was displaced by nagging doubts
the aid is enough to ring-fence that nation’s long-term
financial problems and prevent them from spreading into the
global crisis,anlysts said.
“We are bouncing around here because of the interpretations
of the situation in Europe,” said Jim Kochan, chief fixed income
strategist at Wells Fargo Fund Management in Menomonee Falls,
Wisconsin, which manages about $400 billion.
“There is a reasonable chance that this might work. Then,
there is one that it might not,” he said of the Greece bailout.
As investors continue to grapple with Europe’s fiscal
predicament, they have also cast a wary eye on the surge in
energy costs stemming from anxious buying tied to tensions over
Iran’s suspected nuclear ambitions and cuts in supply.
Global oil prices topping $125 a barrel on Friday,
as average U.S. gasoline prices rose to $3.65 a gallon in the
latest week. Investors fear surging energy expenses would slow
business and consumer spending, threatening to tip the world
back into recession.
“There are more concerns about rising gasoline prices. If
gas prices keep rising, that’s going to hurt the economy and
fuel talk of a double-dip (recession),” Kochan said.
On unusually light volume, benchmark 10-year Treasuries
last traded up 5/32 in price to yield 1.98 percent,
down from 2 percent late Thursday. They touched a 2.08 percent
yield on Tuesday in reaction to the Greece bailout.
Benchmark yields were down 3 basis points on the week, the
first weekly decline in four weeks. They were still near the
middle of a range of 1.79 percent to 2.17 percent that has held
sway since Nov. 1.

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