Treasuries Advance as Chinese Policy Seen Keeping Fed Rate Low
- Dollar's strength predicted to contain interest rates, prices
- Futures traders signal no Fed increase until March 2016
Ten-year Treasuries rose as easing monetary policy in China and Europe highlighted the persistent impediments to faster growth and inflation faced by the world’s largest economies, which have contributed to the Federal Reserve’s decision to keep its benchmark interest-rate target near zero.
U.S. debt halted two days of declines after yields had climbed close to their highest level in two weeks and attracted investors. Many traders expect the Fed after its policy meeting ends Oct. 28 to indicate when it may raise rates, even as domestic and international obstacles to liftoff remain. China announced on Oct. 23 it would cut rates to battle a deflationary threat, while the European Central Bank signaled on the day before it was effectively in a countdown to more stimulus.