Yield on 30-Year U.S. Debt Tumbles
U.S. Treasurys shadowed euro-zone government bonds higher as global investors anticipate more easing measures from the European Central Bank.</br></br>The 30-year bond rallied 25/32 to yield 3.110%, hitting its lowest level this year. Benchmark U.S. 10-year notes rose 9/32 to yield 2.361%. Two-year notes rose 1/32 to yield 0.516%. Yields fall when prices rise.</br></br>Rates on U.S. government bonds have become increasingly attractive relative to comparable bonds across the Atlantic, helping to support Treasurys despite worries about when the Federal Reserve might tighten monetary policy by raising interest rates.</br></br>"There are greater expectations of quantitative easing from the ECB as it relates to asset-backed securities," said Wilmer Stith, portfolio manager of the Wilmington Trust Broad Market Fund. "The question is how effective it will be."</br></br>ECB President Mario Draghi spoke at the Jackson Hole, Wyo., central-banking conference last weekend, emphasizing the lack of inflation in the euro zone and reiterating that the central bank is ready to act when necessary.