Treasury 30-year bonds fell, pushing yileds to almost a one-month high, after the dollar strengthened beyond 100 per yen for the first time in four years, damping demand for U.S. government securities.
Treasury 10-year note yields fell to the lowest level this year as a report showing reduced business activity in April reinforced speculation the Federal Reserve won’t scale back unprecedented monetary stimulus.
The Treasury’s auction of $29 billion of seven-year notes attracted the highest demand this year as investors looked past a report on weekly jobless claims that pointed to an improving U.S. labor market.
Treasuries rose for a second week, paring a quarterly loss, as concern that Cyprus’s banking turmoil will worsen the euro area’s sovereign-debt crisis fueled demand for the refuge of U.S. government debt.
Treasury 10-year note yields rose the most since the first week of the year as the European Central Bank said banks will repay more of its loans than forecast and a strengthening housing market reduced the haven appeal of U.S. government debt.
Fidelity Investments, the second- biggest U.S. mutual-fund company, appointed Robert P. Brown president of its bond unit to replace Christopher Sullivan, who was named head of institutional fixed-income.
Treasuries rose, dropping 10-year yields below 2 percent for the first time in six days, after an unexpected decline in a gauge of U.S. consumer confidence cast doubt over the strength of the economic recovery.