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Treasury 10-year note yields traded at almost a two-month low as the Federal Reserve is forecast to trim monthly bond-buying while holding its short-term interest-rate target at a record low after another report showed the U.S. economic recovery remains on an uneven path.
U.S. debt erased losses after a report showed durable goods orders unexpectedly declined in December by the most in five months, adding to concern the economy may be slowing. U.S. debt fell earlier on speculation the Fed will reduce monetary stimulus this week and as a recovery in emerging-market equities from a three-day slump damped demand for the safest assets. Two-year securities were little changed before the U.S. begins sales of $111 billion of notes this week.
“The durable goods data is a nightmare for the Fed,” said Thomas di Galoma, head of U.S. rates sales at ED&F Man Capital Markets inNew York. “All of a sudden, the data’s getting extremely weak. My feeling is the Fed will taper, but you certainly have to question some of the week data.”
Benchmark 10-year yields rose one basis point, or 0.01 percentage point, to 2.76 percent at 9:50 a.m. New York time, Bloomberg Bond Trader data show. The price of the 2.75 percent note due in November 2023 added 2/32, or 63 cents per $1,000 face amount, to 99 30/32. The yield rose earlier by as much as three basis points.
The two-year yield was little changed at 0.35 percent.
U.S. debt erased losses after a report showed durable goods orders unexpectedly declined in December by the most in five months, adding to concern the economy may be slowing. U.S. debt fell earlier on speculation the Fed will reduce monetary stimulus this week and as a recovery in emerging-market equities from a three-day slump damped demand for the safest assets. Two-year securities were little changed before the U.S. begins sales of $111 billion of notes this week.
“The durable goods data is a nightmare for the Fed,” said Thomas di Galoma, head of U.S. rates sales at ED&F Man Capital Markets inNew York. “All of a sudden, the data’s getting extremely weak. My feeling is the Fed will taper, but you certainly have to question some of the week data.”
Benchmark 10-year yields rose one basis point, or 0.01 percentage point, to 2.76 percent at 9:50 a.m. New York time, Bloomberg Bond Trader data show. The price of the 2.75 percent note due in November 2023 added 2/32, or 63 cents per $1,000 face amount, to 99 30/32. The yield rose earlier by as much as three basis points.
The two-year yield was little changed at 0.35 percent.
