Treasuries Gain as Stevens Comments Raise Concern on Economy

Treasuries rose after Australia’s central bank Governor Glenn Stevens said there’s room to lower local interest rates, triggering concern the health of the global economy may fall short of expectations.

Benchmark U.S. 10-year yields fell two basis points, or 0.02 percentage point, to 2.58 percent as of 1:44 p.m. in Tokyo, Bloomberg Bond Trader data showed. The price of the 1.75 percent note due in May 2023 rose 5/32, or $1.56 per $1,000 face amount, to 92 26/32.

The Reserve Bank of Australia “is talking about the possibility of cutting rates,” said Kim Youngsung, the head of fixed income in Seoul at Samsung Asset Management Co., South Korea’s largest private bond investor with the equivalent of $101.4 billion in assets. “After that, fixed income prices went up. People are worried about a slow economic recovery.”