US 30-year yields near record low as Greece spurs safety bid

[EDINBURGH/SINGAPORE] Treasury 30-year bond yields were close to a record low as Greece's Prime Minister-elect Alexis Tsipras prepared to form a coalition dedicated to ending his country's austerity, setting up a potential conflict with European peers.

Ten-year Treasury notes rose earlier, pushing rates to the least in more than a week, after the Syriza party won in Sunday's elections by harnessing a public backlash against years of belt-tightening, job losses and hardship. The average yield among benchmark securities in the US, Japan and Europe, the world's biggest bond markets, was little changed at 0.79 per cent, down from 1.01 per cent at the start of the year, reflecting slowing global growth and inflation prospects.

"The current bullish bond market will continue for the first half of this year," said Park Sungjin, who invests US$7 billion as head of asset management at Meritz Securities Co. in Seoul. "The global economy has a lot of problems. Governments like Greece don't have much room to boost their economies."

The US 30-year yield was little changed at 2.37 per cent at 9:24 am in London, according to Bloomberg Bond Trader data. The price of the 3 per cent bond due in November 2044 was at 113 10/32. The rate earlier fell as low as 2.3337 percent.

Treasury 10-year yields were at 1.79 per cent.

Greece's securities fell, with the three-year yield rising 70 basis points to 10.77 per cent.

BLOOMBERG