Treasuries to `Retest' Record Low Yields of 2008, Economist Rosenberg Says

U.S. Treasury securities will “retest the lows in yields we had in 2008,” said David Rosenberg, chief economist at Gluskin Sheff & Associates Inc. in Toronto.

“There’s more room for inflation expectations to come down,” Rosenberg said in an interview today on Bloomberg Radio with Tom Keene after the government reported that non-farm payrolls fell for the first time this year.

The yield on the benchmark 10-year note dropped to a closing low of 2.06 percent on Dec. 30, 2008. The note yielded 2.96 percent at 10:11 a.m. in New York today.

“It’s tough for me to see what’s going to support the consumer over the next few quarters,” Rosenberg said, citing “very subdued demand data.”

“There’s no quick fix,” he said.

(In the U.S., hear Bloomberg Radio on satellite radio: Sirius Channel 130 and XM Channel 129. In New York City, tune to WBBR 1130 on the AM dial.)

To contact the reporters on this story: Vincent Del Giudice in Washington vdelgiudice@bloomberg.net; Thomas R. Keene in New York tkeene@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.