Treasury yields rise from three-month low before 30-year auction

Top Forecaster

Low was the only one among 70 analysts in a Bloomberg survey who predicted the yield would fall to 2 percent by the end of last year.

“It’s likely that the U.S. 10-year Treasury yield will work itself down to 1.5 percent by year-end,” said Low, who is based in New York.

As Greece faces political paralysis, a survey of 1,253 Bloomberg subscribers showed 57 percent of investors, analysts and traders predicted at least one country will abandon the euro by year-end. Political leaders remained divided on forming a new government, stoking concern another election may set the stage for the country’s exit from the currency union.

The 10-year yield will meet resistance should it fall to the Jan. 31 low of 1.7901 percent, according to data compiled by Bloomberg. Resistance refers to the level where orders to sell a security may be grouped.

Jobs Data

Jobless claims dropped by 1,000 to 367,000 in the period ended May 5, in line with the median forecast in a Bloomberg News survey and the lowest since the end of March, the Labor Department said today in Washington. The number of people on unemployment benefit rolls was the smallest since July 2008.

The government is also scheduled to announce today the size of a sale of 10-year Treasury Inflation Protected Securities scheduled for May 17.

The Fed is scheduled to sell Treasuries due from October 2013 to January 2014 today, according to the Fed Bank of New York’s website.

The sales are part of the central bank’s effort to replace $400 billion of shorter-term debt in its holdings with longer maturities by the end of June to hold down borrowing costs.

Bloomberg News

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