Salient to Investors:

Ian Lyngen at CRT Capital said the data suggests the recovery continues to edge along.

Investors continue to buy US government debt as a refuge against a renewal of turmoil in global financial markets and concern the US recovery may falter. Thomas di Galoma at Navigate Advisors said anytime you get to 2.06, there seem to be decent buying despite the overwhelming bearishness that seems to be confronting the marketplace.

In December 2012, China holdings of Treasuries rose to $1.2 trillion, Japan holding rose to $1.12 trillion.

Analyst estimates 10-yr yields will climb to 2.33 percent in Q4 2013, equivalent to a loss of 1.1 percent by year-end.

FRB of Cleveland President Sandra Pianalto said given how low interest rates are, it is possible that future asset purchases will not ease financial conditions by as much as in the past.

FRB of St. Louis President James Bullard said a growing balance sheet could be complicated to unwind.

Read the full article at http://www.bloomberg.com/news/2013-02-15/u-s-10-year-yields-set-for-weekly-gain-before-production-data.html

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