Treasuries slid, pushing 10-year yields to the highest level since September, as industry data showed job growth accelerated more than forecast, adding to bets the Federal Reserve may reduce bond purchases this month.
Treasuries rose for a fourth day as the government’s auction of $35 billion in five-year notes attracted stronger-than-forecast demand as investors bet the Federal Reserve will keep short-term borrowing rates low.
Deutsche Bank AG was one of the few firms surveyed by Bloomberg in January to correctly predict the worst rout in the U.S. Treasury market since 2009. Now, Germany’s largest lender says it’s time to buy.
A decline in the amount of Treasuries offered for sale to the Federal Reserve compared with the amount bought by the central bank should help support prices for U.S. government debt, according to FTN Financial.
Treasuries fell and rates surged on bills maturing on the Oct. 17 deadline projected for when the U.S. reaches its borrowing capacity as investors avoided the securities with the risk of default rising.
Treasuries rose for a fourth day after the U.S. sold $34 billion in two-year notes at a lower- than-forecast yield as concern turmoil in Syria may lead to wider military conflict boosted refuge demand.