U.S. Bond Traders Show Faith in Stimulus Europeans Don't Share
- Treasuries fall in U.S. hours after gains in European trading
- Pattern comes with ECB expected to add to stimulus next week
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When Frankfurt’s bond traders get to their offices, the world has suddenly been turning into a gloomier place than when their U.S. colleagues called it a day about 10 hours earlier.
In four of the past five trading sessions, demand for the world’s haven asset, 10-year U.S. treasury notes, has risen during European hours and then fallen as U.S. trading ramped up, according to data compiled by Bloomberg. For Jim Vogel, head of interest-rate strategy at FTN Financial, it shows U.S. investors are betting global woes won’t derail the nation’s economic recovery, while across the Atlantic, traders aren’t so sure European Central Bank efforts to stoke growth and inflation will work, supporting demand for safety.