Government debt prices rose, as a surprise loss at a large US bank and data reinforcing the view of weak consumer spending undermined the stock market and supported demand for low-risk bonds.
Treasury debt prices rose sharply, as weak data on consumer confidence and a surprise profit drop at General Electric slammed the stock market and revived demand for low-risk government bonds.
While the U.S. economy is struggling now it will most likely rebound faster than Europe, making Wall Street a better place for global investors to park their cash than debt markets like the UK, France and Germany, analysts told CNBC Europe on Friday.
Treasury debt prices fell Thursday, as traders favored stocks over bonds on upbeat earnings outlook that overshadowed data supporting the grim view on the economy.
Treasury debt prices rose Wednesday as recession fears and a bleak corporate profit outlook hurt the stock market and lifted demand for less-risky investments like government bonds.
Citigroup, the largest U.S. bank, is close to selling about $12 billion of leveraged loans and bonds to a group of private equity firms, people familiar with the situation said on Tuesday.
Short-dated U.S. Treasury debt prices gained Tuesday on firming expectations for Federal Reserve interest rate cuts in the face of a sagging economy.
Treasury debt prices slid as the stock market staged a comeback after Friday's sell-off, on positive developments in the financial sector that cut into demand for low-risk investments.
The benchmark 10-year government note's price rose 1 point Friday, extending earlier gains, as the stock market came off the session highs it had reached on stronger oil prices and hopes of more aggressive rate cuts from the Federal Reserve.
Treasury debt prices mostly fell Wednesday as investors interpreted testimony by Federal Reserve Chairman Ben Bernanke as hinting that the central bank may be thinking of ending its round of interest rate cuts.
Lehman's CFO told CNBC that the investment bank was essentially forced to raise $4 billion because of growing rumors of liquidity problems similiar to Bear Stearns.
Lehman Bros saw strong demand for its share offering, while a big writedown by UBS signaled the worst might be over.
Lehman Brothers Holdings sold $4 billion of convertible preferred securities on Tuesday, in an effort to stave off questions about the fourth-largest investment bank's stability.
Treasury debt prices plunged Tuesday as plans by financial companies to raise capital were taken as a possible sign the worst of the credit crisis might be over, sapping any safe-haven bid for bonds.
Lehman Brothers became the latest bank to take steps to shore up its funding after markets closed Monday, announcing that it will issue $3 billion of convertible preferred shares.
Citigroup was dethroned as the world's largest underwriter of stocks and bonds for the first time in more than six years, as the global credit crunch hit Wall Street hard.
Investors, worried about the faltering economy and turbulent stock market, have flocked to US Treasury bonds. But the stampede has pushed Treasury yields so low that their investment value is practically non-existent.
Treasury debt prices rose, bolstered by safe-haven buying from investors' persistent worries about the global banking system.
Longer-dated Treasury debt prices rose Friday, aided by favorable data on February inflation.
South Korea's National Pension Service, the world's fifth-biggest pension fund, said on Thursday it was shying away from U.S. Treasurys because of falling yields and the weakening dollar.