U.S. Treasuries Drop by the Most in 3 Months
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Treasuries slumped by the most in almost three months as stronger-than-forecast manufacturing numbers in China and the U.S. fueled investor confidence about the global economy and spurred stocks higher.
The benchmark 10-year yield climbed 10 basis points, the most since Jan. 4, ending the first day of the second quarter at 2.50 percent. The much-watched 3-month to 10-year yield curve steepened. While a softer U.S. retail sales number helped restrain yields early in the U.S. morning, the Institute for Supply Management’s factory gauge prompted a spike in rates, which then proceeded to grind higher through the U.S. afternoon. A strong manufacturing survey in China also helped buoy American equities and general risk appetite.