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.
Treasury Secretary Timothy F. Geithner takes comfort from the government’s ability to borrow at low interest rates as the budget deficit hits a record high. “There’s a lot of confidence” in America’s capacity to meet its commitments, he told Bloomberg Television.
Jay Mueller, who manages $3 billion of bonds for Wells Capital Management in Milwaukee, resisted buying Treasuries for four months, anticipating the Federal Reserve would drop its pledge to keep interest rates at a record low through late 2014.
Treasuries gained, pushing 10-year yields down the most in almost two weeks, as data showed the U.S. economy grew less than previously estimated, easing concern the Federal Reserve is moving closer to slowing its bond buying.
Treasuries rose, pushing the two- year note’s yield to the lowest level this year, as the Federal Reserve signaled that European indebtedness may harm America’s growth and a report showed new home sales plunged.
Treasuries dropped for a sixth straight week, the longest stretch of losses in four years, as U.S. payrolls swelled while the jobless rate rose, keeping alive bets the Federal Reserve will cut back on monetary stimulus.
Treasuries fell for the first time in three weeks, pushing 10-year note yields to a two-year high, on speculation economic growth has improved enough to make the Federal Reserve comfortable slowing bond purchases this month.
Treasuries rose, with yields slipping from almost 11-month highs, as a government report showed U.S. inflation was contained, giving the Federal Reserve scope to maintain its monetary-stimulus program.
Treasury Secretary Timothy F. Geithner has signaled to White House officials that he’s considering leaving the administration after President Barack Obama reaches an agreement with Congress to raise the federal debt limit, according to three people familiar with the matter.