Treasury Futures Climb to Highest Since April on Global Turmoil

Treasury futures rose to a four-month high as global selloffs in stocks and oil strengthened demand for the safest assets.

Contracts on 10-year notes for September delivery rose 1/8 to 128 30/32 at 8:23 a.m. in Tokyo on Monday, hitting the highest since April 28 when they touched 128 31/32. Five-year futures contracts climbed 6/32 to 120 19/32 while 30-year futures gained 25/32 to 165 18/32.

Concerns that decelerating global growth will bring on disinflation spurred a rout in Middle Eastern bourses on Sunday and sent shares in New Zealand, the first major market to open in the Asian region, sliding by the most since 2011. A China manufacturing gauge fell to lowest in more than six years, data on Friday showed, while oil fell below $40 a barrel and U.S. equities saw the worst selloff in almost four years.

Treasuries posted their biggest weekly gain in five months as the latest market turmoil raised speculation the Federal Reserve will keep interest rates close to zero for longer.

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