Treasuries Snap Gain Before Retail Sales, Consumer Price Data Treasuries snapped a gain from last week before government reports economists said will show U.S. retail sales increased while inflation held in check. U.S. debt securities had their worst first half in four years on concern the Federal Reserve is preparing to curtail the bond-buying program it uses to support the economy. They are recovering in July after the increase in yields attracted investors. An improving labor market will help lead the Fed to trim its purchases, according to Bank of America Corp. “As long as we see a stable market like what we’re seeing now, we think the Fed is on its way to start tapering, said Bin Gao, an interest-rate strategist in Hong Kong at the bank. ‘‘That will definitely push the yield higher.’’ Ten-year yields were little changed at 2.59 percent as of 7:03 a.m. in London, Bloomberg Bond Trader data showed. The price of the 1.75 percent debt due May 2023 was 92 3/4. The yield reached 2.75 percent last week, the highest level since August 2011. The yield will rise to 3 percent by year end, according to Bank of America, whose Merrill Lynch unit is one of the 21 primary dealers that trade directly with the Fed. Trading in U.S. government debt was closed today in Japan for a holiday, while it is scheduled to take place as usual in the U.K. and the U.S., according to the Securities Industry and Financial Markets Association website. Treasuries declined 2.5 percent for the first half of the year, the most since 2009, according to Bank of America Merrill Lynch index data. They advanced 0.6 percent last week. bloomberg/news/2013-07-15/treasuries-snap-gain-before-retail-sales-consumer-price-data.html
Posted on: Mon, 15 Jul 2013 06:38:27 +0000
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