The Treasury auctioned $13 billion of 30-year bonds at the lowest yield in 17 months a day after the Federal Reserve said it was concerned slowing global economic growth was a risk for the U.S.
Treasury’s $29 billion seven-year note auction, the final government coupon sale of 2013, drew the highest yield in more than two years as the Federal Reserve plans to wrap up its bond-buying by the end of next year.
Treasuries ended a three-day advance amid speculation a U.S. budget agreement will support the economy and make it easier for the Federal Reserve to start reducing bond purchases.
Treasuries fell after U.S. payrolls increased in May more than forecast even as the jobless rate unexpectedly rose, keeping alive speculation the Federal Reserve may slow its bond-buying under quantitative-easing stimulus.
Treasuries fell, pushing the 10-year note yield higher for a third day, as the government received lower-than-average demand at the auction of $32 billion of three-year notes.
Treasury 10-year note yields rose to a three-week high as the U.S. prepared to sell $72 billion of debt this week with the jobs market showing signs of recovery.
Treasury 30-year bond yields fell to a two-month low as the U.S. received the highest demand this year at an auction of the debt amid concern lawmakers risk pushing the economy into recession over a budget showdown.
The gap between U.S. bank deposits and loans is growing at the fastest pace in two years, providing lenders with more funds to buy bonds and temper the biggest sell-off in Treasuries since 2010.
Treasuries fell for a third day as U.S. payrolls increased by more than 200,000 for the third straight month, adding to speculation the Federal Reserve will avoid more monetary stimulus as the recovery builds momentum.
