U.S., Japan, Australia Bonds Tumble on Stimulus Efforts

Bloomberg – U.S., Japanese and Australian government bonds tumbled on speculation unprecedented central bank efforts to spur economic growth will curb demand for the relative safety of government debt. Treasury 10-year yields, benchmarks for mortgages and corporate bonds in the U.S. and for government borrowing around the world, climbed to the highest level in almost seven weeks. Federal Reserve Bank of Kansas City President Esther George said the U.S. economy may grow 2 percent this year, spurred by central bank stimulus that threatens to eventually push up inflation expectations. The Bank of Japan announced an easing program in April, and the Reserve Bank of Australia cut interest rates to a record low last week. Read Article

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