U.S. Treasuries Tumble as Economy Improves

Treasuries are getting a taste of what life may be like as the world’s biggest economy improves.  U.S. government securities tumbled yesterday as a report showed manufacturing grew at the fastest pace in three years. Investors’ focus on the economy marks a shift from August, when unrest in Ukraine drove demand for the safest securities and as forecasts for the European Central Bank to cut borrowing costs enhanced the attractiveness of the payments on America’s debt.

“The fundamentals tell us that Treasury yields should be higher,” said Will Tseng, a bond fund manager in Taipei at Mirae Asset Global Investments Co. “When the Ukraine crisis gets better or the ECB announces what it’s going to do, then the things dragging Treasury yields down will disappear.”

The U.S. 10-year yield was little changed at 2.43 percent as of 11:22 a.m. in Tokyo, according to Bloomberg Bond Trader data. The price of the 2.375 percent note maturing in August 2024 was 99 17/32.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.