Bloomberg — Treasuries Surge With Aussie, Japanese Bonds Amid Greece Turmoil

Retreat into "safe assets." Markets spooking.

Treasuries surged along with government bonds in Australia and Japan, as Greece leader Alexis Tsipras’s decision to call a referendum on aid conditions scotched speculation the Mediterranean nation would reach a deal with creditors. 

Yields on benchmark 10-year U.S. notes headed for the biggest decline since 2011 as the impasse in Europe stunned markets that had become increasingly focused on both a resolution to Greece’s debt crisis and improving U.S. economic data. Stronger readings have boosted the case for the Federal Reserve to raise interest rates as early as September as investors look ahead to June employment data due July 2. 

“When you don’t know a lot of what could happen, the standard and rational response is to reduce your positions, reduce your risky bets and park your money somewhere safer,” said Sam Tuck, a senior currency strategist at ANZ Bank New Zealand Ltd. “The only thing we really do know is we don’t know a lot of what could potentially happen.”....

Bloomberg
Treasuries Surge With Aussie, Japanese Bonds Amid Greece Turmoil 

Chikako Mogi and Kevin Buckland