Treasury 10-year yields touched 2 percent for the first time since April after U.S. durable-goods orders climbed more than forecast. The Standard & Poor’s 500 Index retreated following an eight-day rally, its longest since 2004. The yen strengthened and the pound weakened.
Treasury 10-year note yields touched 2 percent for the first time since April as orders for durable goods in the U.S. rose more than forecast, another signal the U.S. economic recovery may be strengthening.
Treasury 10-year notes rose for a second week for the first time since November as the absence of progress toward resolving the impasse on raising the U.S. debt ceiling sustained demand for the safest securities.
Treasuries rose for a third day amid speculation U.S. lawmakers will struggle to reach agreement in time to avoid the so-called fiscal cliff of more than $600 billion in automatic spending cuts and tax increases.
Treasury three-year notes are trading at almost the the most expensive levels in more than seven months compared with two- and five-year debt, as the U.S. prepares to sell $32 billion of the securities.
The Federal Reserve has been accelerating purchases of more newly issued Treasuries as part of its maturity-extension program while primary dealers’ willingness to offer securities to the central bank ebbs.
Treasuries fell for a third day, the longest losing streak in almost six weeks, as a surge in new- home construction to the highest level in four years reduced demand for the safety of U.S. government debt.