Business / Markets

Slowing economic growth lifts Treasuries

(China Daily) Updated: 2012-09-11 13:19

Treasuries rose the most in a week on signs of slowing economic growth in China and Japan, following a smaller US jobs gain than analysts expected.

The employment report increased speculation that the Federal Reserve will boost its bond purchases possibly this week as it strives to support the world's biggest economy with quantitative easing. Money market yields show traders expect the US central bank to hold its benchmark interest rates close to zero percent until the middle of 2015.

"Worldwide, the economic data are bad, not just in the US," said Hajime Nagata, who helps oversee the equivalent of $131.8 billion as an investor in Tokyo at Diam Co, a unit of Dai-ichi Life Insurance Co, Japan's second-largest life insurer.

China's industrial output rose 8.9 percent in August from 12 months earlier, the slowest pace in three years, data from the National Bureau of Statistics showed on Sunday.

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