New York: Treasury 10-year note yields rose to the highest level since June after a government report showed the US added the most jobs in three years last month, bolstering expectations the economic recovery is sustainable.
Government securities fell for a second consecutive week ahead of the Treasury's scheduled offering of $82 billion (Dh301 billion) of notes and bonds this week, including a record-tying $40 billion sale of three-year securities.
"The data supports the idea of a sustainable recovery going forward and yields should continue to head higher," Michael Pond, an interest-rate strategist in New York at Barclays, one of 18 primary dealers required to bid at Treasury auctions said. "We should break four per cent on the 10-year soon."
The 10-year note yield rose seven basis points, or 0.07 percentage point, to 3.94 per cent in New York, according to BGCantor Market Data.
Highest level
The yield increased nine basis points on the week and is at the highest level since it reached four per cent on June 11.
The price of the 3.625 per cent security due in February 2020 dropped 17/32, or $5.31 per $1,000 face amount, to 97 13/32.
Two-year note yields rose four basis points to 1.1 per cent. Thirty-year bond yields increased to as high as 4.81 per cent, also the highest since June.
US employers added 162,000 jobs in March after a reduction of 14,000 positions in the previous month, the Labour Department reported in Washington on Friday. The median forecast of 83 economists in a Bloomberg News survey was for an increase of 184,000. The unemployment rate was unchanged at 9.7 per cent.
