Treasuries headed for their steepest weekly loss in a month before a government report economists predict will show U.S. sales of new homes rebounded in April from a decline in March.
A rally that pushed Treasuries higher in 2014 paused this week as minutes of the last Federal Reserve meeting showed officials are examining tools to raise interest rates. The discussion didn’t mean the move will begin soon, the minutes said. Chinese manufacturing improved and sales of U.S. existing homes increased, curtailing demand for Treasuries.
“The economy is improving,” said Roger Bridges, the head of fixed income in Sydney at Tyndall Investment Management Ltd., which oversees the equivalent of $21.2 billion. “I expect we’ll see higher yields.” The rally “has run out of steam.”