U.S. Treasuries Stay Lower Before Jobs Data

Treasuries stayed lower after falling yesterday before a government report that economists said will show America added the most jobs in September in three months.

U.S. sovereign bonds snapped a rally from earlier in the week on speculation today’s data will support the case for the Federal Reserve to raise interest rates next year. The central bank’s asset purchases have been more successful than expected in reducing the jobless rate, as policy makers prepare to stop buying bonds at the end of this month, St. Louis Fed President James Bullard said.

“The policy trend will push Treasury yields higher,” said Will Tseng, a bond portfolio manager in Taipei at Mirae Asset Global Investments Co., which has $65.1 billion in assets. Tseng said he prefers emerging-market sovereign and corporate bonds over Treasuries.

Bloomberg

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