Thursday, June 16, 2005

Prices data fail to halt Treasury sell-off

By Jennifer Hughes in New York, Joanna Chung in London and David Turner in Tokyo for the Financial Times

US Treasury prices extended their sell-off on Wednesday as the recent negative market tone continued in spite of the second benign set of inflation data in two days. ...

The report showed a slight dip in net foreign buying of Treasuries in April to $24.7bn from $27.8bn. Total net inflows into the US reached only $47.4bn – failing to cover the monthly current account deficit for a second month running and raising concerns about future demand for US assets.

A bad sign. A very bad sign.

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