BLBG:Treasuries Snap Four-Day Advance Before Manufacturing, Employment Reports
Treasury 10-year notes snapped a four-day gain on speculation manufacturing and jobs reports this week will show improvement, threatening to end a rally that pushed U.S. government debt up last year by the most since 2008.
Investors in a weekly survey by Ried Thunberg ICAP, a unit of the world’s largest interdealer broker, held to their bearish stance on Treasuries. Ried’s index on the market outlook through June was 44 for the seven days ended Dec. 30, unchanged from the week before. A figure below 50 shows investors expect rates to increase.
“I’m cutting back on long-term maturities worldwide,” said Sungjin Park, who heads the $67.4 billion debt division in Seoul at Samsung Asset Management Co., South Korea’s largest private bond investor. “The macroeconomic picture has shown some hope. It’s better than expected.”
U.S. 10-year yields rose five basis points, or 0.05 percentage point, to 1.93 percent as of 7:44 a.m. in London, according to Bloomberg Bond Trader prices. The 2 percent security maturing in November 2021 fell 14/32, or $4.38 per $1,000 face amount, to 100 5/8. The record low was 1.67 percent set on Sept. 23.
The Institute for Supply Management’s factory index (NAPMPMI) probably climbed to a six-month high of 53.4 in December, economists surveyed by Bloomberg News projected ahead of the figure today.
U.S. payrolls rose by 150,000 in December, after a 120,000 increase in November, according to the median forecast of economists in a Bloomberg News survey before Labor Department data on Jan. 6.
To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net
To contact the editor responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net
