2014.03.2405:28:11UTC+00Treasuries Hits Largest-Losing Bonds Ahead of Home Sales

Treasuries are the largest giving up government bonds in March before U.S. reports this week economists said will display new home sales were near a five-year high and orders for durable products bolster.

U.S. government debt due in more than a year slide lower 0.5 percent this month, the largest decline of 26 bond markets, according to data recorded by Bloomberg and the European Federation of Financial Analysts Societies. Treasuries moved back after Fed Chair Janet Yellen declared last week that the benchmark interest rate, which has been near zero since 2008, may increase about six months after the central bank stops purchasing debt.

“We are currently shifting from U.S. bonds to other bonds,” in Spain, Italy and Ireland, said Hajime Nagata, a debt investor in Tokyo at Diam Co., which has the equivalent of $115.5 billion in assets. “The U.S. central bank is more willing to increase the policy rate. However, the European situation will not allow the central bank to raise its interest rate.”

U.S. benchmark 10-year yields increased one basis point, or 0.01 percentage point, to 2.75 percent at 10:03 a.m. in Tokyo, according to Bloomberg Bond Trader data. The financial worth of the 2.75 percent note due in February 2024 was 99 31/32.

New home sales possibly sag down 4.9 percent in February, after bolstering in January to the topmost mark since July 2008, according on a Bloomberg News survey of economists before the Commerce Department reports the figures tomorrow.

Durable products orders increased 0.7 percent in February from the past month, a separate survey showed. The Commerce Department is scheduled to disseminate the information March 26.

The Fed has slash down purchases of Treasuries and mortgage-supported debt by $10 billion at each of its past three assemblies this year and economists in a Bloomberg survey projected the bank will end its financial stimulus by year-end. It used the purchases to support the world’s largest economy by putting downward pressure on lending expenditures.