Treasuries Poised for Biggest Return in Three Years Amid Turmoil
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Treasuries are headed for the best annual performance since 2011 as global turmoil and low U.S. inflation supported prices even while the economy improved and the Federal Reserve signaled it’s on track to raise interest rates in 2015.
The 10-year note yield touched the lowest level in a week as crude oil traded near the least in five years and global risk appetite ebbed. The security’s yield advantage over Group of Seven peers was almost at an eight-year high after Greek Prime Minister Antonis Samaras failed yesterday to win backing for his presidential nominee, a development that risks severing the nation’s bailout accord. The yield curve, the gap between two-and 30-year yields, was at almost a six-year low.