Treasurys Surge Again as Overseas Investors Seek Haven Amid Persistent Turmoil in Asia
NEW YORK -- Treasurys surged again as Asian financial turmoil continued to make the haven of U.S. government debt very appealing.</br></br>Meanwhile, other sectors of the bond market lagged behind Treasurys, with investment-grade corporate debt turning in a notably weak performance.</br></br>The benchmark 30-year Treasury bond was up 1 7/32 point late yesterday, or $12.1875 for a bond with $1,000 face value, at 107 23/32. Its yield, which moves in the opposite direction from its price, fell to 5.579% from 5.664% late Friday.</br></br>With an absence of market-moving news, traders said the bulk of yesterday's advance in Treasurys was powered by overseas investors fleeing plunging Asian and domestic equities for the safety of U.S. government bonds. The persistent ascent of the dollar against the yen continued to make dollar-denominated assets attractive.</br></br>"International investors want maximum exposure to U.S. Treasurys," said Chris Fitzmaurice, head of government trading at Salomon Smith Barney. "They can't get enough."