Treasurys Win on Draghi Disappointment
U.S. Treasurys gained Thursday as investors sought financial safety after the European Central Bank disappointed those looking for officials to deliver a program to address the region's funding tensions and stalling growth.</br></br>Hopes were raised late last week after ECB President Mario Draghi called the euro "irreversible" and hinted at potential bond-buying efforts. More investors came to expect the central bank would back up these remarks with official action at the ECB's policy meeting Thursday.</br></br>But the central bank kept its policy rate unchanged and Mr. Draghi merely reiterated his stance, quickly deflating hopes and sending investors back into Treasurys.</br></br>"Central banks are zero for three as policy measures remained unchanged," said Sean Simko, senior fixed-income portfolio manager at SEI Investments, referring to the Bank of England and Federal Reserve, which also met this week. "Until there is further clarification, Treasurys will remain the choice asset class."</br></br>Treasury prices swung into gains, with benchmark 10-year notes up 23/32 to yield 1.462% in midday trading. The 30-year bond rose 1 31/32 to yield 2.523%, while two-year notes rose 1/32 to yield 0.223%. Bond yields fall when prices rise.