Treasuries Near Most Expensive Since January Before Jobs

April 15, 2013

 

Treasuries fell for the first time in three days after international policy makers reached agreement to ensure a Greek rescue package remains on track, damping demand for the safest assets.

Longer maturities led losses as staff teams from the European Commission, the European Central Bank and the International Monetary Fund agreed to keep financial aid flowing to Greece, according to a joint statement. Economists say U.S. reports tomorrow will show housing starts rose in March and industrial production increased.

“Greek headlines are somewhat positive and that’s bringing Treasuries a little lower,” said Barra Sheridan, a rates trader at Bank of Montreal in London. “However I’m not sure this is going to last and am looking for a location to buy Treasuries. They’re relatively well supported and I’m a bit surprised by this pullback.”

The 30-year yield climbed one basis point, or 0.01 percentage point, to 2.92 percent at 9:10 a.m. in London, according to Bloomberg Bond Trader prices. The 3.125 percent bond due February 2043 fell 1/4, or $2.50 per $1,000 face amount, to 103 27/32. The 10-year yield climbed one basis point to 1.73 percent.

“The mission has reached staff-level agreement with the authorities on the economic and financial policies needed to ensure the program remains on track to achieve its objectives,” according to the statement from the so-called Troika.