Treasuries gained, sending 10-year yields to a one-month low, as U.S. jobless claims rose, business-equipment orders (CGNOXAI%) fell and home sales were less than forecast, raising concern the economic recovery is uneven.
The benchmark note rallied for a fifth day, the longest stretch in more than a month. Its yield premium over Group of Seven peers was almost the biggest in two months, attracting global investors, as European and Asian officials embraced stimulus to try to head off deflation. The U.S. sold $29 billion of seven-year debt to above-average demand, drawing the lowest yield since October 2013.
“The data is always important,” said William O’Donnell, head U.S. government bond strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut, one of 22 primary dealers that are obligated to bid at the auctions. “This gravitational pull of lower global rates is without a doubt the dominant theme right now.”