The difference between yields on two- and 10-year Treasuries widened to the most since 2011 as employment gains reinforced expectations the Federal Reserve is close to slowing bond purchases used to stimulate growth.
The Treasury’s sale of $13 billion of inflation-indexed notes attracted the strongest demand since 2011 from a group of investors that includes pension funds and insurers, as improved economic growth prospects sparked demand for protection against rising consumer prices.
Treasuries fell, pushing the yield on the benchmark 10-year note up from a one-week low, before a speech by Federal Reserve Chairman Ben S. Bernanke that may help gauge the outlook for monetary stimulus.
A benchmark of U.S. company credit risk declined as Janet Yellen, nominated to be the next chairman of the Federal Reserve, said the economy must improve before the central bank can begin reducing monetary stimulus.
A measure of U.S. company credit risk declined as investors watch economic data to gauge when the Federal Reserve will begin reducing monetary stimulus. Debt sales this week more than doubled to $37 billion.
The Treasury’s auctions of two-, five- and seven-year notes this week saw the highest demand in six months as the Federal Reserve maintained its bond-buying program being used to keep borrowing costs low.