US Treasury Yields Climb From 2-Month Low on Factory Orders

Treasuries fell, with 10-year yields rising from the lowest level in two months, as orders placed with U.S. factories increased in February, damping demand for haven assets.

Benchmark yields climbed after slipping below their 100-day moving average. The Federal Reserve’s gauge of inflation expectations dropped to the lowest level in a month before a government report this week that economists said will show the U.S. is adding jobs without driving wages higher. Fed Bank of Minneapolis President Narayana Kocherlakota will speak today on monetary policy.

“The data has been fine — it’s looked pretty good,” said Ray Remy, head of fixed income in New York at Daiwa Capital Markets America Inc. “People are anticipating a higher employment figure on Friday. Yields are higher than yesterday.”

The 10-year yield rose three basis points, or 0.03 percentage point, to 1.86 percent at 10:13 a.m. New York time, according to Bloomberg Bond Trader prices. It earlier dropped to 1.82 percent, the lowest since Jan. 24, below the 100-day moving average at 1.83 percent. The 2 percent note due in February 2023 fell 3/8, or $3.75 per $1,000 face amount, to 101 19/32.

The 10-year yields will climb to 2.31 percent by year-end, according to a Bloomberg survey of economists.

Bloomberg

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