REUTERS/Florence Lo/Illustration Acquire Licensing RightsSept 5 (Reuters) - A post Labor-day rush of bond issuance by U.S. investment-grade-rated companies added renewed pressure on long-end U.S. Treasuries, as some investors switch to buying top-rated corporate debt offering higher yields than those on government bonds.
Investors told Reuters they expect anywhere between $100 billion and $150 billion in new bond issuance this month.
Ten-year Treasury bond yields were last about nine basis points above Friday's market closing, at 4.27% from 4.180%, and 30-year yields similarly climbed about 9 bps to 4.38% from 4.285% on Friday.
Other factors have also contributed to the selloff, from higher government bond supply to rising concerns around U.S. debt sustainability, as highlighted by Fitch’s downgrade of U.S. debt last month.
"For right now, it’s just all about supply, and I think that’s what’s pushing yields higher," he said.
Persons:
Florence Lo, Gennadiy Goldberg, Tom di Galoma, it’s, Philip Morris, Matt Tracy, Davide Barbuscia
Organizations:
REUTERS, Labor, Financing, Investors, Reuters, Fed, ICE, TD Securities USA, Federal Reserve, JPMorgan Chase, Tuesday's, Unilever Capital Corp, Philip Morris International, Volkswagen, Thomson
Locations:
U.S