Treasuries Losing Streak Continues as Rate Hike Looms

U.S. Treasuries headed for the longest losing streak in five years before Wednesday’s debt auction and as investors prepare for the Fed to raise borrowing costs as early as next week. The dollar rose, while sterling trimmed a decline as the U.K. budget was delivered.

The yield on 10-year U.S. notes climbed for an eighth day and the dollar extended gains after a private reading on U.S. payrolls exceeded expectations. Europe’s government debt tracked Treasuries lower, while stocks in the region fluctuated. The British pound slid for the eighth time in nine sessions as the chancellor of the exchequer delivered his spring budget.

With a rate increase being priced into the market as a near-certainty, bond yields are catching up with expectations for accelerating inflation. At the same time, price swings in bonds, currencies and stocks are all falling, signaling investors are sanguine about the prospects for global growth against the backdrop of higher borrowing costs.

Bloomberg

EUR/USD – Euro Inches Lower, Markets Eye ECB Meeting

Budget Provides Little Support to Sterling

MS

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.