Bankers fear 10 year tranche is losing its lustre as US Treasuries soar

16 May 2013

Asian bankers are thinking twice about pricing US dollar bonds beyond five years now that yields on 10 year Treasuries are creeping back up from their lowest levels since at least 2000, writes Frances Yoon.

Yields on the 10 year were at 1.66% on May 1, but have spiked nearly 30bp since then because of speculation that the Federal Reserve might begin unwinding its multi-billion dollar bond buying programme. This, with stronger growth prospects and a burgeoning stock market has pushed yields higher ...

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