Rosenberg Says U.S. Treasuries to ‘Retest’ Low Yields of 2008
July 02, 2010, 10:39 AM EDT
By Vincent Del Giudice and Thomas R. Keene
July 2 (Bloomberg) -- U.S. Treasury securities will “retest the lows in yields we had in 2008,” said David Rosenberg, chief economist at Gluskin Sheff & Associates Inc. in Toronto.
“There’s more room for inflation expectations to come down,” Rosenberg said in an interview today on Bloomberg Radio with Tom Keene after the government reported that non-farm payrolls fell for the first time this year.
The yield on the benchmark 10-year note dropped to a closing low of 2.06 percent on Dec. 30, 2008. The note yielded 2.96 percent at 10:11 a.m. in New York today.
“It’s tough for me to see what’s going to support the consumer over the next few quarters,” Rosenberg said, citing “very subdued demand data.”
“There’s no quick fix,” he said.
(In the U.S., hear Bloomberg Radio on satellite radio: Sirius Channel 130 and XM Channel 129. In New York City, tune to WBBR 1130 on the AM dial.)
--With assistance from Ken Prewitt in New York. Editors: Carlos Torres, Brendan Murray
To contact the reporters on this story: Vincent Del Giudice in Washington vdelgiudice@bloomberg.net; Thomas R. Keene in New York +1-212-617-6411 tkeene@bloomberg.net.
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net
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