US Treasury’s Fall: Equity Gains Dampen Insurance Demand

Treasury 10-year notes declined for a third day as gains in stocks and higher-yielding securities damped demand for the safest assets.

The benchmark note yields extended an increase after an industry report said U.S. companies increased payrolls more than forecast last month. Federal Reserve Chairman Ben S. Bernanke and Vice Chairman Janet Yellen both said over the past two weeks that the central bank should maintain stimulus efforts.

“There’s ample liquidity in the market as central banks pursue accommodative policy and that drives demand for riskier assets,” said Nick Stamenkovic, a strategist at RIA Capital Markets Ltd. in Edinburgh. “People are waiting for key data this week, and if they show sign of stabilization or improvements, yields will rise from here.”

Treasury 10-year note yields increased three basis points, or 0.03 percentage point, to 1.93 percent at 8:20 a.m. in New York, according to Bloomberg Bond Trader data. That’s the highest since Feb. 25.

The MSCI World Index (MXWO) increased for a third day, rising 0.3 percent in London. It’s heading for the highest close since June 2008. The Dow Jones Industrial Average (INDU) climbed to a record yesterday, and has returned 9.3 percent this year, according to data compiled by Bloomberg.

Treasuries fell yesterday as a report showed U.S. services industries expanded at the fastest pace in a year.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell