BLBG: Treasury Five-Year Note Yields Approach One-Week High as Equities Rally
Treasuries rose as U.S. initial claims for unemployment benefits fell less than forecast and the U.S. prepared to sell $14 billion of five-year inflation-indexed securities.
Government bonds headed for a second weekly gain. The U.S. is due to announce the size of three note auctions scheduled for next week.
“The little bit of a miss versus expectations is boosting the Treasury market this morning,” said Guy LeBas, chief fixed- income strategist at Janney Montgomery Scott LLC in Philadelphia. “With thin-trading markets, any little move is likely to create volatility.”
Yields on five-year notes fell one basis point, or 0.01 percentage point, to 2.11 percent at 8:47 a.m. in New York, according to Bloomberg Bond Trader prices. Ten-year note yields fell three basis points to 3.38 percent.
Five-year yields touched the week’s high of 2.14 percent on April 18.
Jobless claims decreased by 13,000 to 403,000 in the week ended April 16, Labor Department figures showed today in Washington. Economists projected a decline to 390,000, according to the median estimate in a Bloomberg News survey. The number of people on unemployment benefit rolls and those receiving extended payments declined.
To contact the reporters on this story: Susanne Walker in New York at swalker33@bloomberg.net; Lukanyo Mnyanda in Edinburgh at at lmnyanda@bloomberg.net
To contact the editor responsible for this story: Robert Burgess at bburgess@bloomberg.net
