Treasuries were little changed as Federal Reserve Chair Janet Yellen told U.S. lawmakers a “high degree” of accommodation remains warranted.
The 10-year notes the government is selling today in a $24 billion offering yielded less in pre-auction trading than at last month’s sale. Yellen told the congressional Joint Economic Committee data show “solid growth” in the second quarter, bolstering the case for a faster expansion this year. Still, she said, “many Americans who want a job are still unemployed” and inflation remains low.
“The Fed is going to remain in the game for now,” said Sean Simko, a money manager who oversees $8 billion at SEI Investments Co. in Oaks, Pennsylvania. “It keeps Treasuries in the range it’s in. She has alluded to the economy making strides. We still need to remain patient.”
Ten-year notes yielded 2.59 percent at 10:19 a.m. in New York, based on Bloomberg Bond Trader data. They fell to 2.57 percent on May 5, matching the low on Feb. 3, which was the least since Nov. 1.
Treasury long-term notes and bonds were the world’s best- performing government securities over the past month amid tamed inflation and slowing economic growth.
U.S. government securities due in 10 years and more returned 3.5 percent in the month ended yesterday, the most of 144 debt indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies.