Treasuries fell, sending 10-year notes down for the first time in four days, before a government report economists said will show U.S. builders broke ground on homes at the fastest pace in eight months.
Yields climbed from the lowest level in almost four weeks on speculation today’s figures and an industry report later this week on existing home sales will show the U.S. recession is easing. Investors should unwind bets on a rally in longer- maturity Treasuries, according to a note to clients from JPMorgan Chase & Co., one of the 18 primary dealers that are required to bid at the government debt auctions.
“Yields will rebound,” said Takashi Yamamoto, chief trader in Singapore at Mitsubishi UFJ Trust & Banking Corp., part of Japan’s biggest bank. “The U.S. economy is on the way to recovery, slowly.”
The yield on the 10-year note rose three basis points to 3.5 percent as of 7:21 a.m. in London, according to BGCantor Market Data. The 3.625 percent Continue reading
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