BLBG:Treasuries Fall Sixth Day as Improving Data Damps Demand
Treasuries fell for a sixth day as speculation the Federal Reserve’s effort to spur growth is working damped demand for the safest assets.
Benchmark 10-year note yields rose toward an 11-month high. The rate posted the biggest weekly increase in almost a year last week after a report showed the U.S. jobless rate unexpectedly dropped to 7.7 percent last month, a four-year low. Sales at U.S. retailers rose in February for a fourth month, according to a Bloomberg News survey of economists before data on March 13.
“There is a clear trend of improving data in the U.S.,” said Peter Chatwell, a fixed-income strategist at Credit Agricole Corporate & Investment Bank in London. “We are expecting to see a big sell-off in Treasuries and this is just the start. The jobs data helped to build in to the market’s subconscious that U.S. economic data is showing tangible improvement and that builds confidence.”
Benchmark 10-year yields increased one basis point, or 0.01 percentage point, to 2.06 percent as of 8:26 a.m. in London, according to Bloomberg Bond Trader data. The rate climbed to 2.08 percent on March 8, the most since April 5. The price of the 2 percent note due February 2023 fell 3/32, or 94 pence per $1,000 face amount, to 99 1/2.
To contact the reporters on this story: Emma Charlton in London at echarlton1@bloomberg.net; Wes Goodman in Singapore at wgoodman@bloomberg.net.
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net.
