Azernews.Az

By Bloomberg

Treasuries fell, with U.S. 10-year note yields rising for the first time in three days, before the nation auctions $64 billion of coupon-bearing debt this week.

The U.S. is selling $24 billion of three-year notes on Tuesday, before auctions of 10- and 30-year debt later this week. After 10-year yields reached a 2015-high of 2.31 percent on May 7, bonds stabilized at the end of last week as a report showed the U.S. added 223,000 jobs in April, falling short of the 228,000 forecast in a Bloomberg survey. Treasuries also fell Monday as bonds from German and other euro-region nations extended declines from last week.

“The recent bounce in Treasuries, driven by a soft U.S. employment report, has proved short-lived as bunds head lower again,” said Nick Stamenkovic, a fixed-income strategist at Edinburgh-based broker RIA Capital Markets Ltd. “In addition, the quarterly refunding could weigh on U.S. government bonds near term as investors demand a concession.”

Benchmark 10-year note yields added two basis points, or 0.02 percentage point, to 2.17 percent as of 10:28 a.m. London time, after falling 10 basis points in the previous two days. The 2 percent security due in February 2025 slid 5/32, or $1.56 per $1,000 face amount, to 98 18/32.

Volatility on Treasury options as measured by the Bank of America Merrill Lynch MOVE index reached 90.99 on May 6, the highest level in two months.