Treasuries Fall as Jobless Claims Decline to 5-Year Low
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Treasuries dropped, pushing 10-year yields up from almost three-week lows, as claims for jobless benefits unexpectedly fell to a five-year low and the U.S. sold $15 billion in inflation-indexed debt at negative yields.
The auction, which drew a yield of negative 0.63 percent, was the seventh 10-year Treasury Inflation Protected Security sale since January 2012 to yield below zero as investors seek refuge from inflation amid the Federal Reserve’s efforts to prop up the economy that pushed its balance sheet beyond $3 trillion for the first time this week. U.S. government debt declined earlier as applications for unemployment insurance payments decreased to the least since January 2008, the Labor Department said today.