Treasuries rose pushing yields down - Nirmal Bang

Treasuries rose, pushing 10- and 30-year yields down the most in almost two months, as a slide in stocks around the world increased demand for the relative safety of U.S. government securities. Bonds extended gains after ADP Research Institute said U.S. companies added fewer workers than forecast. The government will report June 7 that nonfarm payrolls increased by 165,000 jobs last month, matching April's gain, a Bloomberg survey estimated. Investors are weighing whether the Fed Reserve will slow its bond purchases under quantitative easing amid stronger growth.

The economy expanded at a "modest to moderate" pace in 11 of 12 Fed Reserve districts, with broad-based gains ranging from business services to construction and manufacturing. "Hiring increased at a measured pace in several districts, with some contacts noting difficulty finding qualified workers," the Fed said.

Service industries in the U.S. expanded at a faster pace in May as a pickup in orders showed companies are confident demand will be sustained after a second-quarter slowdown. The ISM's non-manufacturing index climbed to 53.7 from 53.1 in April. A reading above 50 indicates expansion in the industries that make up almost 90% of the economy.

Source : Equity Bulls

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