Long Treasury Bonds Have Their Own ‘Healthy Correction’
The steepest selloff in three months didn’t last long and most likely reflected traders getting ahead of this week’s Treasury auctions and corporate-bond sales.
Dropping off, but not for long.
Photographer: Tomohiro Ohsumi/Getty Images
Without much fanfare, the longest-dated Treasury bonds had their worst day in three months just before the U.S. Labor Day weekend. Unlike the selloff in technology stocks, it hardly appears to be a harbinger of more losses to come.
The yield on 30-year Treasuries jumped 11 basis points to 1.47% on Friday, nearly erasing a five-session rally in one swoop. The sharpest increase since May received relatively little attention, even though it came after a jobs report that showed the unemployment rate fell in August by more than expected, simply because shares of the most popular U.S. companies had just tumbled from all-time highs. That’s inherently more captivating than the world’s biggest bond market retracing its advance and remaining in its established range.