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Treasuries, Dollar Qualm Rises on Speculation Descending to EndTreasuries, Dollar Qualm Rises on Speculation Descending to End

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    Last Updated: August 12th, 2009

    Investors are turning more price reducing  on Treasuries and the dollar on speculation their appeal will decrease as the 1th global recession since World War II shows signs of easing.

    Expectations for higher yields on Treasuries and a weaker dollar over the next six months increased, according to 2,345 respondents from New York to Tokyo to London in the Bloomberg Professional Global Confidence Index. For the first time since November 2007, when the monthly survey started.

    “Yields are going to go higher as the economy stabilizes,” said Sean Simko, a survey participant who oversees $8 billion at SEI Investments Co. in Oaks, Pennsylvania. “In the end, people feel more secure.” He expects investors will require higher yields on longer term debt to compensate for the threat of inflation.

    Confidence in the global economy rose to 58.1, from 39.1 in July, according to the survey.

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