June treasury note futures nevertheless reversed gains to a session high point at 122-25 to trade at a minor loss on the day trimming a fall in the yield to a minor rise to 3.18%.
In the Philippines, the overseas armies of construction workers, maids and managers whose remittances supply much of the country's foreign exchange are hanging on to their dollars in the hope that they will yield more pesos tomorrow a graphic demonstration of the loss of confidence which afflicts the entire region.
Further monetary easing also helps gold since it adds to worries about inflation whenever an economic recovery takes hold, plus it means a low so-called opportunity cost, or the loss of interest earnings that investors might have gotten instead by holding yield-bearing assets.
Portfolios would still be chock-a-block with loans that yield no interest and shares that cannot be sold because their sale would force banks to book a loss.