US-treasury bond prices rise amid Dubai’s uncertainties
U. S. Treasury prices rose with 10-year notes gaining, for the first time in four days on Friday following uncertainty over the ongoing restructuring process of the crisis hit conglomerate Dubai World. Further, the move by the People's Bank of China to hike bank reserve also prompted investors to invest in U. S. Treasury.
There were widespread worries in the market over monetary tightening that could derail the economic recovery which is already subdued. Such worries shifted investor's focus from commodities and equities to the government debts. It may be recalled that Chinese bank has announced to hike bank reserve requirements by 50 basis points on Feb. 25.
James Combias, head of government bond trading with Mizuho Securities USA, said that uncertainties over the fate of Dubai World's restructuring are making investors to look for a safe investment heaven. Reports of less than expected increase in consumer confidence and contraction in the Greece's economy also refrained investors to make risky investments.
Combias added, "There's a flight-to-quality bid today with everything that's going on with Dubai and after China surprised us with the bank restrictions."
New Zealand News
- First deliveries of all-electric Porsche in Australia to take place this weekend
- Crown Resorts suffers record six-month loss due to COVID-19 closures
- Australia’s Crown Resorts 'not suitable' for Sydney gaming license: Inquiry Commission
- What Does Phasing Out Cheques Tell Us About Finance in New Zealand?
- South Korean casino operator GKL closes third casino amid soaring cases of COVID-19