Treasuries rose, pushing 10-year note yields to the lowest in three months, after a private report showed U.S. manufacturing slowed more than forecast in January, adding to questions about the strength of the economic recovery.
Treasuries fell for the first time in three days after a private report showed companies in the U.S. hired more workers last month than forecast, adding to signs the economic recovery is strengthening.
Inflation will stabilize without sliding into deflation after the Federal Reserve’s program to spur growth by purchasing $600 billion of Treasuries concludes tomorrow, according to Nomura Holdings Inc.’s George Goncalves.
The U.S. sale of $32 billion of two- year notes drew the strongest demand in almost a year on speculation the Federal Reserve’s efforts to hold down short- term yields will continue to support the debt.
The groundwork for preventing a U.S. Treasury default from causing a cataclysmic breakdown of the plumbing of the global financial system was laid after the last debt-ceiling crisis in 2011 -- and is still a work in progress.
A drop in the price of lumber may signal the yields on the 10-year Treasury note will fall as the Federal Reserve ends its $600 billion Treasury-purchase program in June, according to Nomura Holdings Inc.
Treasuries fell for a sixth day, the longest losing streak since October, as the Federal Reserve’s raising of its assessment of the U.S. economy damped the refuge appeal of U.S. government debt at a $13 billion auction of 30-year bonds.
A $16 billion auction of U.S. five- year inflation-indexed notes drew the highest yield in more than three years amid bets the economic recovery is strong enough for the Federal Reserve to begin withdrawing monetary stimulus.