* 30-yr Treasury bond price falls 1 pct
* Traders expect strong Friday jobs report
* Trader expect hawkish Fed despite dovish Yellen comments
By Sam Forgione
NEW YORK, March 31 U.S. Treasuries yields rose
on Monday on expectations that stronger U.S. jobs data would
keep the Federal Reserve on track to raise interest rates
earlier than expected.
The 30-year Treasury bond fell over 1 percentage
point in price on expectations that Friday's employment report
for March will be better-than-expected and bolster the hawkish
tone that Fed Chair Janet Yellen took earlier this month at a
"We're in a relatively hawkish environment, and some
investors may feel bonds are at an attractive level to short,"
said Jeffrey Young, U.S. interest rate strategist at Nomura
Securities International in New York.
Treasuries yields were higher despite more dovish comments
from Yellen on Monday, including that the Fed's "extraordinary"
commitment to boosting the economy will be needed for some time
Yellen said earlier this month that the Fed could start
raising interest rates six months after the U.S. central bank
ends its current monthly bond-buying program, which caused
selling pressure on Treasuries, especially short-and
Traders said that recent strong U.S. economic data on
consumer confidence, durable goods orders, and weekly jobless
claims point to an improving U.S. economic picture after frigid
temperatures hurt data at the start of the year.
"What's gnawing at Treasuries is this belief or fear that
the economic data is going to potentially improve, and maybe
significantly so, in the next couple of months as we work
through the weather impact," said William O'Donnell, head U.S.
Treasury strategist at RBS Securities in Stamford, Connecticut.
Treasuries yields rose despite data on Monday showing the
pace of business activity in the U.S. Midwest fell more than
expected in March to its lowest level since August.
The Institute for Supply Management-Chicago business
barometer was 55.9, down from 59.8 in February. Economists'
median forecast in a Reuters poll was 59.0.
The benchmark 10-year U.S. Treasury note was
last down 9/32 in price to yield 2.75 percent. The yield on the
note was at 2.71 percent late Friday.
The 30-year bond was last down 20/32 in price to yield 3.57
percent. The yield on the bond was at 3.54 percent last Friday.
(Reporting by Sam Forgione; editing by Andrew Hay)