BLBG:Treasuries Rise, Snap Longest Run of Losses in More Than a Year
Treasuries advanced for the first time in eight days, with U.S. 10-year securities ending their longest run of declines in more than a year.
Treasury inflation-linked securities were set for their second-worst monthly slump on record before data tomorrow that may show a gain in consumer prices was near an all-time low. The U.S. is selling $35 billion of five-year notes today, the second of a planned $99 billion of debt sales this week. Federal Reserve Chairman Ben S. Bernanke said last week the central bank may curb bond buying this year and end it in mid-2014 if economic growth is in line with central bank projections.
“Treasuries appear to be consolidating after the recent selloff but sentiment remains fragile,” said Nicholas Stamenkovic, a fixed-income strategist at RIA Capital Markets Ltd. in Edinburgh. “Today’s five-year auction will provide a good gauge of investor demand.”
The yield on the benchmark U.S. 10-year note fell six basis points, or 0.06 percentage point, to 2.55 percent as of 8:37 a.m. London time. The price of the 1.75 percent note maturing in May 2023 rose 1/2, or $5 per $1,000 face amount, to 93 1/32. The yield had risen for seven straight days, the longest run since March 19, 2012.
The five-year rate was also six basis points lower, at 1.43 percent. The U.S. last sold five-year notes on May 29, at a yield of 1.045 percent.
To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
