Weakened dollar draws Asian buyers to Treasurys

AP News
Posted: Oct 25, 2010 1:33 PM
Weakened dollar draws Asian buyers to Treasurys

The falling dollar is giving a lift to government bonds.

Bond traders say the cheaper dollar has drawn in bargain hunters from Asia, helping to push Treasurys higher on Monday. A weakened dollar lowers the price of U.S. assets for foreign buyers.

In early afternoon trading, the 10-year Treasury note was up 34.3 cents on the dollar to $100.90. The gain pushed the yield down to 2.52 percent from 2.56 percent late Friday. The 30-year bond rose 87.5 cents to $99.81, knocking the yield from 3.93 percent to 3.88 percent. Bond prices and yields move in opposite directions.

The dollar dropped against other major currencies, hitting a fresh 15-year low against the Japanese yen. One dollar fell to 80.66 yen from 81.33 late Friday.