US GOVERNMENT debt prices rose yesterday as investors prepared for a record supply of 30-year bonds, the last leg of this week's $81billion (R600billion) quarterly refunding.
Most analysts predict a solid demand for the $16billion in 30-year Treasuries, the longest US government debt maturity, following strong results at the auctions of 3-year and 10-year notes this week.
The 30-year bond appeals to investors seeking low-risk investments that offer decent long-term yields, even as the stock market has rallied more than 50percent since March.
But concerns have lingered over the credit-worthiness of the US government because of its burgeoning deficit. - Reuters