Interest Rates on Treasuries Continue to Fall

Treasury 10-year yields were within five basis points of the lowest level since January 2009 before a report this week that economists said will show manufacturing activity slowed. Five-year yields were close to the least in two years after the Conference Board said consumer confidence dropped more than economists forecast, spurring expectations the Federal Reserve will take further measures to keep borrowing costs low. The U.S. is scheduled to sell $29 billion of seven-year notes today, the last of three note sales this week totaling $100 billion. “The set of incoming data will show sluggishness in the U.S. economy, and bode well for bonds, supporting expectations for additional monetary action,” said Masashi Nakamura, a Tokyo-based economist at Mizuho Research Institute Ltd., a unit of Japan’s second-largest bank. “This will add to downward pressure on bond yields.” Read more here:

Interest Rates on Treasuries Continue to Fall