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 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.
Treasuries fell, with 10-year note yields rising to a one-month high, as better-than-forecast economic data and optimism that the political will exists to stave off a deeper crisis in Europe trimmed refuge demand.
Treasury 10-year note yields traded at almost a three-week low as Federal Reserve Chairman Ben S. Bernanke said inflation would remain in check as he renewed a pledge to sustain stimulus after the U.S. expansion gains strength.
Treasuries declined after five-year notes attracted the lowest demand at an auction since August as investors questioned whether the economy is faltering enough to merit additional stimulus by the Federal Reserve.
For all the handwringing over the slowdown in the U.S. economy, the bond market shows there’s less risk of deflation now than before the Federal Reserve’s first two rounds of large-scale debt purchases.