Treasuries fell before a U.S. report this week economists said will show labor-market gains that will keep the Federal Reserve headed toward raising interest rates, and as Republicans swept to control of the Senate.
Ten-year (USGG10YR) yields approached the highest in almost a month as ADP Research Institute reported companies in the U.S. added 230,000 workers in October. Government nonfarm payrolls data due Nov. 7 is forecast to show a gain of 235,000. Republican Mitch McConnell, in line to become U.S. Senate majority leader, said “there will be no government shutdowns.” The Fed ended bond purchases under quantitative-easing stimulus last month.
“People are looking at the positives again,” said Alex McKnight, a money manager with GAM in New York, which oversees $120 billion. “We’re coming out of the tail end of QE and seeing less of the headwinds that others are facing.”