U.S. Treasurys yields rose on Wednesday as a selloff in German Bunds caused investors to reduce their holdings in other low-risk government debt, propelling U.S. 30-year yields to their highest levels in five weeks.
A stronger-than-expected rise in domestic existing home sales in March revived bets the Federal Reserve would raise interest rates later this year, overshadowing concerns about the absence of a deal between Greece and its creditors.
Traders had snapped up Bunds since the European Central Bank began its 1.1 trillion euro bond purchase program in March with the aim of helping the euro zone economy. “Bunds have been super overbought. They now hit some sell stops,” said Karl Haeling, vice president at Landesbank Baden-Wurttemberg in New York.
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