Treasuries Up as Growth Falls Short Part Two
Fri January 30, 2004 10:56 AM ET
(Page 2 of 2) THANKS, BOJ
On the margins, the market was supported by the prospect that foreign central banks' appetite for U.S. debt remains insatiable.
Japan spent a record 7.1545 trillion yen in currency intervention in January -- equivalent to $67.56 billion at Friday's rate -- to stem the yen's rise against the dollar, Finance Ministry data showed. Much of that money is thought to end up in Treasuries.
Asian central banks, particularly the Bank of Japan, have propped up the bond market as massive buyers of Treasuries in the past year in their fight to slow export-damaging gains in their currencies.
Such buying has helped hold down Treasury yields, compensating for softer demand for U.S. government bonds from domestic investors.
The trend continued in the latest week, with holdings of U.S. debt by foreign central banks leaping again to touch a record high.
While the gains in that period were mostly concentrated in agency debt, solid offshore demand for new two-year notes on Thursday comforted U.S. bond investors, suggesting another uptick in foreign Treasury holdings in the coming week.
Home Equity Loans Rates Online Refinancing Loan 125%
Mortgage Refinance - Lowest Mortgage Rates - |
