Treasuries Fall Before Data Forecast to Show Jobs Market ExpandsAnchalee Worrachate
Treasuries declined for the first time in six days as investors judged yields too low before data this week that analysts forecast will show the U.S. economy continued to create jobs at a solid pace, warranting higher interest rates.
A private payroll survey by ADP Research Institute on Jan. 7 will show U.S. companies added 225,000 workers in December compared with 208,000 the previous month, according to the median of economist estimates compiled by Bloomberg News. A separate report is forecast to show initial jobless claims declined in the week ended Jan. 3.
Benchmark U.S. 10-year yields rose two basis points, or 0.02 percentage point, to 2.13 percent at 6:29 a.m. New York time, according to Bloomberg Bond Trader data. The 2.25 percent note due in November 2024 dropped 5/32, or $1.56 per $1,000 face amount, to 101 3/32.
Economists predict the U.S. 10-year yield will rise to 3.06 percent by end of 2015, according to a Bloomberg News survey with the most recent forecasts given the heaviest weightings.