Bloomberg News

Treasuries Head for Weekly Gain on Euro Crisis, Jobs Outlook

November 04, 2011

Nov. 4 (Bloomberg) -- Treasury 10-year benchmark notes headed for their steepest weekly gain since August as European leaders struggled to contain the region’s debt crisis and before a report forecast to show hiring in the U.S. slowed.

Yields indicate banks are becoming more reluctant to lend, widening the difference between the rates for three-month dollar loans and the overnight index swap to a 28-month high. Billionaire investor George Soros said Greece faces the danger of a disorderly default, raising the specter of a run on lenders in other countries.

Ten-year yields were little changed at 2.08 percent at 8:58 a.m. London time, according to Bloomberg Bond Trader prices. The 2.125 percent security maturing in August 2021 traded at 100 14/32. The record low of 1.67 percent was set on Sept. 23.

Greek Prime Minister George Papandreou yesterday scrapped a referendum on its latest bailout package, to avert a split in his party.

The Stoxx Europe 600 Index was little changed, while futures on the Standard & Poor’s 500 index of shares expiring in December fell 0.3 percent.

The Citigroup Economic Surprise Index, which shows whether U.S. data beat or fell short of forecasts, has climbed to 13.6 from this year’s low of negative 117.2 in June.

The U.S. probably added 95,000 jobs in October, versus 103,000 in September, according to the median forecast in a Bloomberg News survey of economists before the Labor Department reports the figure today.

--Editors: Matthew Brown, Mark McCord

To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net

To contact the editor responsible for this story: Wes Goodman in Singapore at wgoodman@bloomberg.net


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