Bulls on Parade: T-bills Poised for Biggest Decline Since 2001

Better-than-expected earnings, including a solid quarter from Google and a better-than-expected performance from Citigroup, are slamming U.S. treasuries. Two-year notes are set to plunge for the biggest weekly decline since 2001. Bloomberg:

Two-year yields rose 8 basis points, or 0.08 percentage point, to 2.18 per cent as of 8:17 a.m. in New York, according to broker BGCantor Market Data. The price of the 1 3/4 per cent security due March 2010 fell about 1/8, or $1.25 per $1,000 face amount, to 99 5/32. Yields on benchmark 10-year notes rose 4 basis points to 3.76 per cent.

“A combination of signs that the financial market is stabilizing and hawkish comments from policy makers put Treasuries on the defensive this week,” said Nick Stamenkovic, fixed-income strategist at RIA Capital Markets Ltd. in Edinburgh. “Bonds may fall further in the near-term, and I see that as a buying opportunity.”

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