Aug. 25 (Bloomberg) — Treasuries rose as a government report showed initial
jobless claims unexpectedly increased last week, fueling concern the economic
recovery is slowing and stoking demand for U.S. debt.
Treasuries snapped three days of decline speculation Federal
Reserve Chairman Ben S. Bernanke may disappoint investors betting on a
commitment to step up stimulus. European and Asian stocks rose a day before
Bernanke’s remarks at a conference in Jackson Hole, Wyoming. Pre-auction trading
indicates today’s $29 billion government offering of seven-year notes will
produce a record low auction yield.
“The Treasury market is reacting to the headline number being
higher,” said Drew Matus, senior U.S. economist in Stamford, Connecticut, at UBS
AG.
Yields on 10-year notes fell four basis points, or 0.04
percentage point, to 2.26 percent at 8:49 a.m. in New York, according to
Bloomberg Bond Trader prices. The 2.125 percent securities maturing in August
2021 advanced 9/32, or $2.81 per $1,000 face amount, to 98 23/32.
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