The U.S. Treasury market posted its biggest one-day sell-off in three months on Monday, as encouraging data on manufacturing activity in the world’s two biggest economies spurred some investors to scale back their holdings of safe-haven bonds.
“We are going from a bad situation to a less bad situation. The had a impact for sure,” said Ellis Phifer, senior market strategist at Raymond James in Memphis, Tennessee.The Institute for Supply Management said its index on U.S. domestic factory activity rose to 55.3 in March, higher than what analysts polled by Reuters had expected.
In heavy-volume trading, the yield on U.S. benchmark 10-year Treasury notes rose nearly 9 basis points for its biggest single-day jump since Jan. 4. It broke above 2.50 percent to its highest levels in over a week in late U.S. trading.“The move was overdone a bit,” said Justin Lederer, Treasury strategist at Cantor Fitzgerald in New York.The inversion between three-month rates and 10-year yields fed speculation about a U.S. economic recession.
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