TREASURIES-U.S. bond prices up on economic data, Brazil election

lunes 27 de octubre de 2014 10:36 GYT

* Brazil concerns, ECB stress tests spook market

* U.S. services sector slows in October, helps Treasury prices

By Gertrude Chavez-Dreyfuss

NEW YORK, Oct 27 (Reuters) - U.S. Treasury debt prices rose on Monday in a safe-haven bid on concerns about weak U.S. economic data and the steep drop in Brazil's stock market following the re-election of incumbent leftist Dilma Rousseff.

Economic data on the world's largest economy wobbled again on Monday, with a slowing in the U.S. services sector and a less-than-expected rise in pending home sales, elevating U.S. bond prices.

U.S. government 30-year bond yields, which move inversely with prices, fell after four straight days of gains, while yields on benchmark 10-year Treasuries slid for a second consecutive session.

The Brazilian stock market, meanwhile, was down nearly 5 percent in mid-morning trading, while the real tumbled to a near six-year low against the dollar as Rousseff, who has been blamed for the country's sluggish economy, won re-election Sunday night. Many investors had backed rival candidate Aecio Neves. Brazil's outcome has turned investors cautious on risky assets overall.

"The bid in Treasuries has a little more to do with Brazil, following the re-election of Rousseff, " said Tom di Galoma, head of rates and credit trading at ED&F Man in New York.

"People are concerned about the economy in Brazil and emerging markets in general. So I'm looking at the yield of 10-year notes sort of supported at 2.30 percent, going back to 2.20 at some point."   Continuación...