Treasuries fell, bringing the yield on the 10 years above 3 percent for the first time since July, as evidence of global recovery is gaining momentum and lifted shares damping demand for the safest securities .
Public debt also fell as investors speculated that the European Central Bank will take additional measures to prevent the sovereign debt crisis is spreading in Europe. U.S. payrolls expanded for the second month after reports yesterday said that job growth and manufacturing expansion, the Labor Department is expected by economists for the report tomorrow.
"It seems to be a risk today-day, partly due to speculation that the ECB will do more to stop the debt crisis from spreading," said Peter Chatwell, fixed income strategist at Credit Agricole SA. "This helps to reduce the demand for safe assets like Treasury bonds, at least for now."
The yields on benchmark 10-year note rose four basis points, or 0.04 percentage point to 3 percent at 7:53 am in New York, according to BGCantor Market Data. The price of 2,625 per cent security due in November 2020 fell 10/32, or $ 3.13 per $ 1,000 face amount, to 96 3 / 4.
The yield on the 10-year bond touched 3.0034 percent, the highest since July 29. The yield rose 17 basis points yesterday, the most since Nov. 15.
The MSCI World Index by 0.7 percent today, while futures on 500 of Standard & Poor's, which expires this month increased 0.4 percent. January futures, crude oil fell 0.1 percent.
ECB meeting
policy makers of the ECB in Frankfurt today's meeting to keep the benchmark interest rate at a record low of 1 percent. ECB President Jean-Claude Trichet said this week that investors are underestimating the determination of politicians to end the debt crisis and prop up the euro.
further reduction may be limited because the Federal Reserve plans to buy $ 7 billion to 9 billion dollars of Treasury bonds and government today is expected to announce it will sell a limited amount of notes and bonds next week.
The U.S. central bank is expected to buy Treasuries maturing in February 2018-November 2020 today as part of its plan to pump 600 billion U.S. dollars in the June economy, according to the website of the New York Fed.
sales of public debt next week includes $ 32 billion three-year notes on Dec. 7, $ 21 billion 10-year notes the next day and $ 13 billion of bonds at 30 years 9 December, according to Wrightson ICAP LLC, a financial advisory firm in Jersey City, New Jersey, specializing in public finance. The total of $ 66 billion compared with $ 72,000,000,000 in the previous sale of the same maturities in November.
Contracting Company
Treasuries fell yesterday as stocks rallied and a report showed U.S. companies added more jobs in November than economists expected.
"We are seeing clear evidence that monetary stimulus is having an impact and should reaccelerate the world economy," strategists at JP Morgan Chase & Co. and Jan Loeys in New York, wrote in a research note received today. "Our main position is to be simple actions over and raw materials."
The extra yield investors demand to hold a 10-year debt in two years touched 2.44 percentage points, the widest on a closing basis since July.
two-year rates tend to track the Fed's target for overnight loans due to the expiration date. Yields on long-term bonds are more influenced by inflation and by the size of government debt. The Fed has pledged to maintain the rate of bank loans for a day low for a "prolonged period".
The difference between yields on 10-year bonds and Treasury inflation-protected securities, an indicator of expectations operator in consumer prices during the life of the securities has widened to 2.16 percentage points This year low of 1.47 percentage points in August.
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