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Treasuries Hit; Yields Hit 7-Month High

Treasuries Hit; Yields Hit 7-Month High
Wednesday March 9, 7:57 am ET

NEW YORK (Reuters) - U.S. Treasuries prices dived on Wednesday, taking benchmark yields to seven-month highs, as technical selling swept the market after a major chart barrier broke.

The benchmark 10-year note (US10YT=RR) slid 20/32 in price, lifting yields to 4.48 percent from 4.395 percent late on Tuesday. The sudden spike cracked previous highs at 4.42 percent and took yields to their highest reading since August. Chart watchers were now looking for a rise to the 4.53/55 percent area.

Traders could offer no single reason for the move, just as on Tuesday when prices fell sharply. Much of the selling was by leveraged speculators seeking to break trigger technical sales and get a bear trend going.

In the background were worries about incipient inflation given sky high commodity prices, rising oil, a falling dollar, a tightening labor market and a U.S. economy growing above trend.


LINK: http://biz.yahoo.com/rb/050309/markets_bonds_yields_1.html