Thursday 23 November 2017

US Treasuries yield up over 3pc on hope of more jobs

Cordell Eddings

Treasuries fell, pushing the 10-year note yield above 3pc for the first time since July, as a report today is forecast to show more gains in US employment, fuelling demand for assets linked to growth.

Securities declined after an unexpected increase in home sales added to evidence of a faster economic expansion.

Payrolls may have increased in November for a second month, according to a Bloomberg News survey. The Federal Reserve bought more treasuries and the European Central Bank refrained from providing any additional steps to address the region's financial crisis.

"The market is waiting for (today's) employment report to determine where we are, and seeing how far we've come on the labour front," said Larry Milstein, managing director in New York of government and agency debt trading at RW Pressprich, a fixed-income broker and dealer for institutional investors.

"The ongoing euro crisis and the Fed purchases will keep a lid on how far treasuries can fall in the near term."

Yields on benchmark 10-year notes rose three basis points to 2.99pc in New York, according to BGCantor Market Data.

The Fed bought $8.3bn (€6.3bn) of treasuries maturing from February 2018 to August 2020 as part of its plan to pump $600bn into the economy through June, according to the New York Fed's website. The central bank has purchased $27.5bn of US securities this week. (Bloomberg)

Irish Independent

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