The US Treasury 10-year and 30-year yields dropped to all-time lows
as fewer jobs were added by the economy in May than the forecast of
economists and because of escalating concerns about the continuing
European sovereign-debt crisis that may spread.
The Labor Department’s report about the US employment being the least
in a year led to the drop of US 10-year note yields below 1.5 percent
for the first time, representing the biggest weekly drop in eight
months. It seems more likely now that the Federal Reserve will initiate a
stimulus to boost the economy as the Federal Reserve Chairman Ben S.
Bernanke is preparing to testify before Congress on June 7 about the
outlook for the US Economy.
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