Treasuries Rise as Bernanke Sees ‘Extended Period’ of Low Rates |
| Bloomberg - Jul 21, 2009 |
Treasuries advanced as Federal Reserve Chairman Ben S. Bernanke told Congress policy makers sees little evidence of inflation and will keep interest rates “exceptionally low” for an ‘extended period’.
Ten-year notes reversed earlier losses as Bernanke said that while the economy is showing “tentative signs of stabilization,” the Fed’s monetary policy “remains focused on fostering economic recovery.” The central bank began purchasing Treasuries maturing between May 2016 and May 2019, part of its plan to cap borrowing costs.
“Bernanke has reiterated that we will see lower rates for longer and that is helping buoy the market,” said Thomas Tucci, the New York-based head of U.S. government bond trading at RBC Capital, one of the 17 primary dealers that trade with the Fed. “Some people seem to believe there is some massive silver bullet that will cure the economy, and that doesn’t exist.”
Read Full Article from Bloomberg
- Posted: 2009-07-21 10:30:44
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