U.S. 10-Year Note Falls Most Since June on Supply, Credit
Treasuries fell, pushing 10-year notes to their biggest weekly loss since June 2008, as investors prepared for the U.S. government to resume debt sales after a two-week hiatus.
Ten-year yields rose above 3.4 percent for the first time since November amid concern the record supply of Treasuries to pay for a mounting budget deficit may jeopardize the U.S.’s AAA credit rating. Longer-maturity notes and bonds led the declines, sending yields on 10-year securities to 2.56 percentage points above those on two-year notes, the most since November.
“We are testing key levels on the long end of the market,” said Hicham Hajhamou, a trader in New York at BNP Paribas, one of the 16 primary dealers that trade with the Federal Reserve. “There’s a lack of confidence in dollar assets and the bond market is repricing itself.”
The yield on the 10-year note rose nine basis points, or 0.09 percentage point, to 3.45 percent at 2:15 p.m. in New York, according to BGCantor Market Data. The price of the 3.125 percent security due in May 2019 fell 3/4, or $7.50 per $1,000 face amount, to 97 1/4.
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