LONDON, April 22 | Mon Apr 22, 2013 6:28am EDT
LONDON, April 22 (Reuters) - U.S. government bond prices fell on Monday in Europe, retreating from last week's four-month highs as investors made room for $99 billion in new supply to be auctioned later this week.
Demand for low-risk instruments was also weakened by a rally in the euro zone's lower-rated debt markets following the re-election of Italy's president.
The move raised the prospect of an end to the country's two-month old political stalemate, although doubts remained whether that can include a lasting reform-minded government.
Benchmark 10-year U.S. T-note yields were 2.6 basis points higher on the day at 1.7306 percent, off a four-month low of 1.6730 percent hit last Wednesday on the back of a series of weaker-than-expected U.S. economic data.
"We had a good rally in the past few weeks ... (but) we're going to have a lot of supply this week and that's adding a bit of pressure," said Nick Stamenkovic, bond strategist at RIA Capital Markets.
He saw yields trapped in a narrow 1.70-1.80 percent range in the near-term, with more disappointing data releases needed to break below the recent lows.
Data due this week include figures on March sales of existing and new homes on Monday and Tuesday respectively, durable goods orders on Wednesday, new jobless claims on Thursday and advance figures on first quarter gross domestic product growth due on Friday.
Some analysts warn against betting that weak data could send yields much lower and keep them there.
"There is potential for fixed income yields to squeeze lower still if the data flow support such a move but we would caution that this move back into prior ranges may not be sustainable except in the most extreme negative macro outcomes," Charles Diebel, head of macro strategy at Lloyds, said in a note.
"Selling rallies seems appropriate in core fixed income but given the macro data run, it should be (U.S. Treasuries) that eventually underperform and back up to higher yields."
T-note futures were 6/32 lower at 132-26/32.
- Link this
- Share this
- Digg this
- Reprints
Anda sedang membaca artikel tentang
TREASURIES-U.S. yields rise as investors prepare for new supply
Dengan url
http://sarapannasiudak.blogspot.com/2013/04/treasuries-us-yields-rise-as-investors.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
TREASURIES-U.S. yields rise as investors prepare for new supply
namun jangan lupa untuk meletakkan link
TREASURIES-U.S. yields rise as investors prepare for new supply
sebagai sumbernya
0 komentar:
Posting Komentar