BLBG:Treasuries Fall as Bonds Worldwide Drop Most in Almost a Decade
Treasuries fell, and bonds around the world headed for their steepest monthly loss in almost a decade, on concern the Federal Reserve will trim its debt purchases in the months ahead.
Securities in the Bank of America Merrill Lynch Global Broad Market Index have fallen 1.3 percent in May, poised for the steepest loss since April 2004. U.S. Treasuries, benchmarks for company and sovereign borrowing costs globally, dropped 1.9 percent, the Bank of America indexes show. The U.S. 10-year yield climbed to a 13-month high.
“There’s more selling left,” said Tomohisa Fujiki, an interest-rate strategist in Tokyo at BNP Paribas SA, whose New York unit is one of the 21 primary dealers that underwrite U.S. debt. “We can’t rule out another move” toward higher yields, he said.
U.S 10-year rates increased five basis points to 2.21 percent as of 6:38 a.m. in London, according to Bloomberg Bond Trader data. The price of the 1.75 percent note due in May 2023 slid 13/32, or $4.06 per $1,000 face amount, to 95 7/8. The yield earlier reached 2.23 percent, the highest since April 2012.
The U.S. is scheduled to sell $35 billion of five-year notes today. A two-year auction for the same amount yesterday drew the fewest bids since February 2011.
To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net
To contact the editor responsible for this story: Wes Goodman in Singapore at wgoodman@bloomberg.net.
