Bond buyers are demanding the most in at least a decade to own long-dated bonds relative to debt with short maturities as they seek to protect themselves from losses when the Federal Reserve starts scaling back stimulus.
Treasury 10-year yields rose to the highest level in two months as Federal Reserve officials said they might reduce $85 billion in monthly bond purchases “in coming months” as the economy improves, minutes of their last meeting show.
Wall Street is starting to signal that 2014 will look a lot like 2013 for U.S. corporate bond investors, setting the stage for the first back-to-back annual losses for investment-grade securities on record.
Treasuries lost the most in four months after a report showed the economy added more jobs last month than forecast, boosting speculation the Federal Reserve may slow bond purchases as soon as its Dec. 17-18 meeting.
Treasuries fell the most in two months as reports showed the economy expanded in the third quarter beyond projections and added more jobs in October than forecast, boosting speculation the Federal Reserve is moving closer to a reduction of its $85 billion of monthly bond-buying.
Treasury 10-year note yields rose to the highest levels in three weeks after a gauge of U.S. manufacturing expanded at a faster pace than forecast, weakening the case for the Federal Reserve to maintain stimulus.
Treasury 10-year notes fell the most in two months this week as two gauges of U.S. economic activity expanded at faster-than-forecast paces, weakening the case for the Federal Reserve to maintain stimulus.
MF Global Holdings Ltd. took the cult of the Wall Street chief executive officer to a new level with its sale of bonds that pay a higher rate if Chairman and CEO Jon Corzine quits to take a job from the U.S. president.
A gauge of U.S. company credit risk fell the most in almost four months amid signs that lawmakers may reach an agreement to delay a lapse in borrowing authority until next month. L Brands Inc. sold $500 million in notes.