Treasuries Fall on Labor-Cost Data
MARKETSCOPE: Treasuries, which skidded Tuesday after the OECD said the Fed might have to lift rates again soon, fell again Wednesday as second-quarter unit labor costs were revised higher to 4.9% from the original 4.2% rate, and more than forecasts. The U.S. second-quarter nonfarm productivity was revised higher to a 1.6%growth rate from the initially reported 1.1%, just above the 1.5% expected.
S&P Economist Beth Ann Bovino said the upwardrevisions to productivity was in line with expectations, but the rise in labor costs put upward pressure on bond yields.
The 10-year Treasury notes fell 04/32 to 100-20/32 for a yield of 4.801%, the 2-year note fell 01/32 to 100-04/32 for a yield of 4.82%, 30-year bonds fell 09/32 at 93-03/32 for a yield of 4.952%.