Investors sold US Treasury bonds in anticipation of a new wave of government debt this week, bringing long-term yields on Wednesday to their highest level in more than a month.
The benchmark 10-year government bond yields rose for the fourth trading session to 0.680%, from 0.535% on August 6, reflecting the decline. The yield on the 30-year bond continued to rise, reaching its highest level since early July.
The move upwards marked a significant change in the bond market, which ended last week with 10-year yields stalled near record lows. The Treasury market signals this year are hard to read for some investors, with the slippage in bond yields suggesting they are worried about the economic outlook, even as US stocks soar. since the low in March sent the opposite message.
Investors said rising yields in recent days could have been triggered by bond traders cutting some of their holdings and fund managers creating gaps in portfolios. when they get ready for the new wave of bonds offered, investors said. Thinner trading volumes in August, marking summer holidays in the US and Europe, may also contribute to the decline.
The US this week is expected to increase its high debt levels from weekly bond and bond sales as it seeks to spur spending programs to induce an economic recovery. On Wednesday, the government is scheduled to auction $ 38 billion of 10-year bonds at around 1 p.m. ET, followed by a sale of $ 26 billion in 30-year debt on Thursday. After $ 48 billion of 3-year bonds were sold on Tuesday, that would bring the week’s total to $ 112 billion.