Treasuries Losing Streak Continues as Rate Hike Looms

March 8, 2017 Share Print 0

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

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Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.