“Treasury 10-year notes declined for the first time in four days as the U.S. government prepared to auction $72 billion in coupon-bearing securities this week.
Longer maturities led losses as economists said a report in two days will show retail sales rose in January amid an improving labor market. The government is scheduled to sell $32 billion of three-year notes tomorrow, $24 billion in 10-year debt the following day and $16 billion in 30-year bonds on Feb. 14. President Barack Obama intends to use his State of the Union address this week to focus on job creation, marking a renewed emphasis on the economic issues.
“We’re in a tight range and the auctions this week will be the focus for Treasuries,” said Barra Sheridan, a rates trader at Bank of Montreal in London. “The market can cheapen up into those sales and the 10-year should auction above 2 percent.”
The 10-year yield rose three basis points, or 0.03 percentage point, to 1.98 percent as of 7:34 a.m. in New York, according to Bloomberg Bond Trader prices. The 1.625 percent note due in November 2022 declined 7/32, or $2.19 per $1,000 face amount, to 96 7/8. The yield declined seven basis points last week.
Treasuries handed investors a 0.8 percent loss this year through Feb. 8, compared with a 0.5 percent decline for an index of government bonds around the world, according to Bank of America Merrill Lynch data. The benchmark 10-year yield climbed to 2.06 percent on Feb. 4, the highest level since April 12.
