U.S. Treasuries Fall Before Jobs Report

Treasuries fell, with yields rising to a seven-year high versus their developed-market peers, before a jobs report tomorrow forecast to show the U.S. economy is strengthening as major central bank policies diverge.

David Tepper, founder of $20 billion hedge-fund firm Appaloosa Management LP, called the bond-market rally “done” after the European Central Bank unexpectedly cut interest rates and pledged to buy asset-backed securities to spur economic growth while staving off the threat of deflation. The U.S. benchmark 10-year note yielded the most versus its Group of Seven counterparts since 2007 as European yields plunged.

“If you looked at the U.S. in a vacuum or a bubble, clearly bond yields should be higher,” Eric Stein, a money manager at Boston-based Eaton Vance Corp., said in a phone interview. Stein oversees about $13 billion. “Growth has picked up considerably.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.