Prices on U.S. government bonds fell, driving yields higher as investors continue to shed Treasuries and other assets considered as safe haven, while traders awaited the consumer price data.
Yield on the short two-year Treasury note rose 2 basis points to 1.355 percent, its highest since August 8. Meanwhile, the 10-year Treasury note yield marginally rose at 2.194 percent, against a 2.171 percent seen in late trading in New York. The 30-year Treasury yield advanced 2 basis points to 2.749 percent against the 2.774 percent.
Long-dated government papers recorded their third consecutive session of losses investors in the Treasury market abandon haven plays from the previous week. The benchmark Treasury yield had fallen under 2.10 percent on worries regarding geopolitical tensions between North Korea and the U.S. and the effect of Hurricanes Irma and Harvey on the overall economy. The recent increase in yields indicates, however, that trades are reducing the chances of any lasting impact on the economy and markets.
The easing of those worries has revived the demand for risky appetites and drove up Wall Street indices to their highest level in months.
The material has been provided by InstaForex Company – www.instaforex.com