Treasuries rose, erasing their losses from last week, after the Bank of Japan said “uncertainty” regarding the American economy is growing, reviving demand for safety. U.S. government notes headed for a fifth monthly gain as the BOJ’s expansion of a bank-loan program fell short of traders’ expectations. The Federal Reserve bought $360 million of Treasury Inflation Protected Securities, the least amount since it resumed buying government debt this month. “The market was looking for a broader expansion of the package from the Bank of Japan and stronger steps to shore up their market,” said Christian Cooper, senior rates trader in New York at Jefferies Group Inc., one of the 18 primary dealers that trade directly with the Fed. “The increasing uncertainty that was mentioned also set the tone for the bid this morning. It’s positive for fixed income.”
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
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Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio