U.S. to sell 7-year notes, likely at record-low yield
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) — Treasury prices turned lower on Thursday, pushing yields up further from record lows, after European Central Bank President Mario Draghi vowed the institution would take any necessary steps to save the euro, boosting investors’ willingness to shift into riskier assets like stocks.
Yields on 10-year notes 10_YEAR +2.21% , which move inversely to prices, rose 2 basis points to 1.42%, after touching a record low in the previous session. A basis point is one one-hundredth of a percentage point.
Yields on 30-year bonds 30_YEAR +1.26% edged up 2 basis points to 2.48%. Their all-time low was 2.445%.
Yields on 5-year debt 5_YEAR +5.39% jumped 3 basis points to 0.59%, while the record low was 0.535%.
At an investor conference, Draghi also said that addressing high yields in euro-area sovereign debt comes within the central bank’s mandate, noted bond strategists at RBS Securities.
“It’s yet another day when Treasury yields are being buffeted by headlines out of Europe,” they wrote in a note. “It’s nothing new in Treasuryland, where we remain captive to the whim of politicians in Europe and here at home, too.”
European equities, the euro and crude-oil futures all jumped after his remarks were reported. Read more on Draghi, euro.
Treasurys slipped a little more after a pair of reports showed first-time U.S. jobless claims fell more than forecast in the latest week and orders for durable goods improved more than forecast in June. See more on jobless claims. Read about durable goods.
Coming up, the government will auction 7-year notes 7_YEAR +3.44% , likely at the lowest yield on record.
The U.S. already sold 2-year and 5-year notes this week, with only tepid demand seen for the securities. Read about Treasurys, 5-year auction.
