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.