| Treasuries Decline Before $11 Billion Sale of 30-Year Bonds |
| News - Americas |
| Written by Susanne Walker and Gavin Finch, Bloomberg |
| Thursday, 11 June 2009 06:54 |
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June 11 (Bloomberg) -- Treasuries fell for a second day before the government auctions $11 billion of 30-year debt and a report expected to show sales at U.S. retailers rose in May. Yields on 10-year notes, a benchmark for company and consumer borrowing costs, jumped to 3.9975 percent yesterday after an auction drew the highest yield since August 2008 and Russia and Brazil said they plan to shift some foreign reserves into International Monetary Fund bonds. Purchases at U.S. retailers probably rose 0.5 percent in May, according to the median estimate of economists surveyed by Bloomberg News.
“If the retail sales are strong it will give the market more optimism about the economy,” said James Combias, New York- based head of Treasury trading at Mizuho Securities USA Inc., one of 16 primary dealers that trade with the Federal Reserve. “The bond will go cheaper before the auction and the Street will underwrite it.” The yield on the 10-year note fell three basis points, or 0.03 percentage point, to 3.98 percent at 8:00 a.m. in New York, according to BGCantor Market Data. The 3.125 percent security maturing in May 2019 fell 7/32 to 93 1/32. |