Consumer Prices
Treasuries were little changed today, with benchmark 10-year notes yielding 3.44% as of 6:52 a.m. in London, according to Bloomberg Bond Trader prices. The 3.625% note maturing in February 2021 traded at 101 1/2.
The Fed said in November it would pump $600 billion into the U.S. economy by purchasing Treasuries to sustain the economic expansion.
The difference between yields on 10-year notes and Treasury Inflation Protected Securities, a gauge of trader expectations for consumer prices over the life of the debt, has widened to 2.46 percentage points from 1.82 percentage points six months ago. The 10-year average is 2.0 percentage points.
Treasury 10-year notes pay 1.34% after subtracting consumer-price increases, the so-called real yield. That's down from last year's high of 2.39% in December.
Pimco's record $236.9 billion Total Return Fund gained 7% in the past year, beating 82% of its competitors, according to data compiled by Bloomberg. The company is a unit of insurer Allianz SE in Munich.