Treasury Bears Cave In As Yields Tumble
Author: Min Zeng</br></br>Bulls turned more bullish and bears were less pessimistic about Treasury prices, according to the latest Dow Jones Newswires survey of major trading banks in the U.S. government bond market, as investors sought safety in the low-risk securities on rising anxiety over the global economy.</br></br>Deutsche Bank and Jefferies & Co. joined the bulls in the survey, which was conducted Wednesday through Friday. The poll covered all 18 primary dealers, the exclusive club of banks that trade directly with the Federal Reserve and are obligated to bid on Treasury auctions.</br></br>Deutsche Bank said it expected the yield on the 10-year note to fall to 2.5% by the end of the year, down from its June forecast of 4.25%, while Jefferies cut the yield call to 2.7% from 4.55% in June.</br></br>The median forecast sees the 10-year yield ending the year at 2.88%, down from 3.75% in a previous survey in June and 4.15% polled in March. Only six of the 18 said they see the yield ending the year above 3%.