Bloomberg -- Treasuries fell for the first time in three days as U.S. lawmakers made progress on passing a budget and ending a partial government shutdown, curtailing demand for the relative safety of debt.
A bipartisan group of lawmakers is proposing to House Republican and Democratic leaders a compromise to end the stalemate that brought nonessential services to a halt.
“It won’t go on forever,” said Kazuaki Oh’e, a debt salesman at CIBC World Markets Japan Inc. in Tokyo. “Nobody’s saying the U.S. Treasury is going to go bankrupt.”
Ten-year U.S. yields increased two basis points, or 0.02 percentage point, to 2.62 percent as of 9:29 a.m. in Tokyo, Bloomberg Bond Trader data show. The price of the 2.5 percent note due in August 2023 fell 1/8, or $1.25 per $1,000 face amount, to 98 31/32.
BlackRock’s Inc.’s Larry Fink and Pacific Investment Management Co.’s Bill Gross said the U.S. debt standoff will be resolved without a default.
The congressional dispute will be resolved “very rapidly,” Fink said at a Beverly Hills, California, event. Gross said a default is “not a realistic proposition.”
All On Wall Street articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.