Treasuries Extend Global-Debt Rally on China, US Growth Worry

Investors seek secure havens for their savings and governments continue to issue debt. Manufacturing continues to decline in both the United States and China, adding to a surplus in oil stocks, and analysts suggest the news from China followed by a halt in trading prompted a steep decline in global stock prices. “The Treasury rally goes against the consensus that yields will rise in 2016 with Federal Reserve officials indicating they aim to raise interest rates as many as four times this year,” report Ari Altstedter and Allison McNeely for BloombergBusiness. The writers conclude that China’s economic woes could disrupt the US Federal Reserve’s plans to increase interest rates gradually and return to flexible monetary policies in place prior to the 2007-2008 global credit crisis. – YaleGlobal