Investor appetite for treasuries is declining as interest in stocks grows.
Yields on 30-year treasuries increased from 4.10% this week (Wednesday) to 4.30% on Thursday, their highest level since November, after a government auction saw bids that were priced lower than expected.
RBC Capital Markets economist Tom Porcelli, "In an environment where markets are pricing in a better macroeconomic backdrop, it is harder to sell bonds at low yields," according to reports by Financial Times.
Treasuries have lost 3.95 percent since December, according to Merrill Lynch & Co.’s U.S. Treasury Master index.
Bonds are tumbling as the U.S. Treasury steps up increased debt sales to a record $3.25 trillion this fiscal year ending Sept. 30, according to Goldman Sachs Group Inc.
Why? To finance bank bailouts, economic stimulus plans and fund a budget deficit.
