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TREASURIES-U.S. bonds gain after lacklustre corporate earnings
October 26, 2012 / 8:31 AM / 5 years ago

TREASURIES-U.S. bonds gain after lacklustre corporate earnings

LONDON, Oct 26 (Reuters) - U.S. government bonds firmed in Europe on Friday after lacklustre corporate earnings lowered expectations on third-quarter growth data and increased the appetite for safe-haven assets.

* Results from global giants Apple and Amazon undershot expectations overnight, while in Europe, Renault, Saint Gobain, Gucci and Publicis weighed in with gloomy earnings and outlooks.

* The U.S. economy was seen as expanding by 1.9 percent on the year in the third quarter, according to a Reuters poll, accelerating from 1.3 percent in the second quarter. Markets have probably now positioned for a slightly weaker number after recent corporate results, traders said.

* U.S. 10-year T-note yields fell 2.8 basis points to 1.7837 percent, while T-note futures rose 11/32 to 132-08/32.

* “We’ve had poor performance in equities on the back of poor earnings,” RIA Capital Markets bond strategist Nick Stamenkovic said. “The market focus clearly is going to be on the U.S. GDP, but there are risks to the downside. A lot of people are worried about the business investment.”

* The Federal Reserve, as expected, held off taking any further easing steps on Wednesday after it launched a new round of bond purchases last month.

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