Treasuries Fall Second Day as Economists Say Retail Sales Rose Treasuries dropped for a second day before a government report that analysts said will show U.S. retail sales rose for a fourth month in July, adding to signs growth is quickening in the world’s biggest economy. The nation’s 10-year yield climbed to the highest in a week amid speculation the Federal Reserve it moving closer to trimming the bond-buying plan it uses to spur growth. The extra yield investors demand to own 10-year Treasuries instead of Japanese bonds approached the widest in almost two years as the U.S. economic expansion quickens while growth in the Asian nation slows. “Investors are betting on solid U.S. retail sales today,” said Nick Stamenkovic, a fixed-income strategist at RIA Capital Markets Ltd. in Edinburgh. “This would reinforce the Fed’s rosy outlook for the U.S. economy. Evidence of an improving U.S. economy would be negative for Treasuries.” The benchmark U.S. 10-year yield rose three basis points, or 0.03 percentage point, to 2.65 percent at 8:31 a.m. in London, according to Bloomberg Bond Trader prices. That is the highest level since Aug. 6. The 2.5 percent note due in August 2023 fell 9/32, or $2.81 per $1,000 face-amount, to 98 21/32. U.S. retail sales climbed 0.3 percent last month after a 0.4 percent advance in June, according to the median forecast of economists surveyed by Bloomberg News.
Posted on: Tue, 13 Aug 2013 08:09:00 +0000
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