BLBG:Treasuries Little Changed Before Durable Goods, Two-Year Auction
Treasuries were little changed before a U.S. report that economists said will show durable goods orders improved in February, reducing demand for the safest securities.
The U.S. is scheduled to sell $35 billion of two-year securities today in the first of three note auctions this week totaling $99 billion. Orders for durable goods rose 3.9 percent, the most in five months, according to a Bloomberg News survey. Other reports today are forecast to show new-home sales fell in February and consumer confidence worsened this month.
The benchmark 10-year note yielded 1.93 percent as of 8:37 a.m. London time, according to Bloomberg Bond Trader prices. The 2 percent note maturing in February 2023 traded at 100 5/8. The yield climbed to 1.97 percent yesterday, the highest level since March 15.
The two-year notes scheduled for sale today yielded 0.26 percent in pre-auction trading. The previous two-year auction on Feb. 25 drew bids for 3.33 times the amount of debt available, the lowest level since July 2011.
Treasuries yielded the most versus German bunds in 33 months yesterday after Cyprus won a bailout imposing losses on bond holders. The spread between Treasuries and 10-year bunds expanded to 59 basis points, the most since June 2010, according to data compiled by Bloomberg based on closing prices. It was 58 basis points today.
To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
