LONDON, March 6 U.S. Treasury yields rose on
Wednesday as a recent stock rally dented appetite for safe-haven
assets, with market players also positioning for a
higher-than-forecast jobs number on Friday.
Ten-year U.S. Treasury yields rose 2.1 basis
points to 1.92 percent, but traders said bond prices have held
up reasonably well as U.S. stock markets hit new highs and with
recent data from the world's largest economy broadly upbeat.
U.S. stock index futures pointed to fresh gains on Wall
Street, after the Dow Jones Industrial Average hit historic
highs this week.
"The fundamentals (point) towards higher yields, yet bond
markets are doing well," said Craig Collins, trader at Bank of
He said U.S. Treasury markets remained underpinned thanks to
conditions outside the United States, including expectations for
slower growth in Europe and political uncertainty in Italy.
An inconclusive vote in the euro zone's third largest
economy has led to worries financial market instability could
resume, but Italian debt prices were bid this session.
Markets also positioned for non-farm payrolls data on
Friday, traders said.
Even though a Reuters poll indicated economists were
expecting only a mild improvement in job creation last month to
160,000 from January's 157,000, traders said markets were
preparing for a potentially higher number.
"I think the market is probably looking for a 175,000 to
200,000 print. I think people are expecting non-farms to be
higher and people are setting up shorts," a second trader said.
The first trader expected payrolls to come in at between
160,000 and 185,000.
"All the data has been uniformly positive so we will
probably have a nice number," he added.
Five-year U.S. Treasury yields edged 1.4 basis
points higher to 0.79 percent and 30-year yields
rose 2.4 bps to 3.13 percent.