Treasury Two-Year Notes Fall as Claims Rise Less Than Forecast
http://www.bloomberg.com/apps/news?pid=20602007&sid=arOHz7iGArug#
By Susanne Walker
Jan. 7 (Bloomberg) -- Treasury two-year notes fell for the first time in four days as the number of Americans filing first- time
claims for jobless benefits rose less than forecast last week.
The difference between 2- and 10-year Treasury yields narrowed from near the most on record as initial jobless claims increased by 1,000 to 434,000, fewer than the 439,0000 claims economists expected. The government plans to announce at 11 a.m. how much it will sell in notes and bonds next week. A Labor Department report tomorrow is forecast to show the economy lost no jobs in December.
“It’s a pattern we’re seeing that the employment picture is getting better from a real intolerable level,” said Paul Horrmann, a broker in Jersey City, New Jersey, at ICAP Plc, the world’s largest inter-dealer broker. “We’re still quite high relative to where we were two years ago. The Treasury market’s focus is now on supply.”
The
yield on two-year notes rose three basis points, or 0.03 percentage point, to 1.03 percent at 8:48 a.m. in New York, according to BGCantor Market Data. The price of the 1 percent security maturing in December 2011 fell 2/32, or 63 cents per $1,000 face amount, to 99 30/32.
The government will sell $10 billion in 10-year Treasury Inflation Protected Securities on Jan. 11, $40 billion of three- year notes on Jan. 12, $21 billion of 10-year securities on Jan. 13 and $13 billion of 30-year debt on Jan. 14, according to Wrightson ICAP LLC, an economic advisory firm in Jersey City, New Jersey.