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1 Apr 2015
US Treasuries tend to rally in April
FXStreet (Mumbai) - As per the Bloomberg data, US Treasuries have rallied in the month of April in each year from 2010 to 2014.
One rationale for the five year trend is that Japanese investors tend to begin buying Treasuries after the financial year end on 31st March. This may be due to the relatively high yield on the US Treasuries. Japan owns USD 1.2386 trillion in U.S. debt to become one of America’s largest foreign creditor, Treasury Department data show.
Meanwhile, most market participants got it wrong when it comes to the movement in the yields seen in the first quarter. The average forecast of economists surveyed by Bloomberg at the end of 2014 was for an increase to 2.55%. However, the yields fell by 25 basis points, hitting lows near 1.8%-1.7%.
One rationale for the five year trend is that Japanese investors tend to begin buying Treasuries after the financial year end on 31st March. This may be due to the relatively high yield on the US Treasuries. Japan owns USD 1.2386 trillion in U.S. debt to become one of America’s largest foreign creditor, Treasury Department data show.
Meanwhile, most market participants got it wrong when it comes to the movement in the yields seen in the first quarter. The average forecast of economists surveyed by Bloomberg at the end of 2014 was for an increase to 2.55%. However, the yields fell by 25 basis points, hitting lows near 1.8%-1.7%.