July 5 (Bloomberg) -- U.S. 10-year Treasuries fell the most in three weeks after a private report estimated U.S. companies in June added the most jobs since at least 2001, fueling speculation the Federal Reserve will raise interest rates next month.
Futures traders added to bets the Fed will lift the overnight lending rate between banks after Automatic Data Processing Inc. said companies added 368,000 jobs. The report comes two days before the government's employment report, among the releases most closely watched by bond investors as a gauge of the economy's strength...
... The 10-year yield reached 5.25 percent on June 28, a four- year high, which ``might be the top of the range,'' said Daniel Fuss, a vice chairman and portfolio manager at Boston-based Loomis Sayles & Co., which manages about $70 billion. ``We're in the peaking period of interest rates.''
Declines in Treasuries may also be limited because previous ADP reports have estimated more private employment gains than the Labor Department subsequently documented. ADP estimated 122,000 new private-sector jobs for May, while the government counted 67,000. For February, ADP estimated 342,000 new jobs, and the government tally was 168,000.
``The history of this number being a good leading indicator is shaky at best,'' Andy Brenner, head of global fixed income at Hapoalim Securities in New York, wrote in an e-mail to clients.
Futures traders added to bets the Fed will lift the overnight lending rate between banks after Automatic Data Processing Inc. said companies added 368,000 jobs. The report comes two days before the government's employment report, among the releases most closely watched by bond investors as a gauge of the economy's strength...
... The 10-year yield reached 5.25 percent on June 28, a four- year high, which ``might be the top of the range,'' said Daniel Fuss, a vice chairman and portfolio manager at Boston-based Loomis Sayles & Co., which manages about $70 billion. ``We're in the peaking period of interest rates.''
Declines in Treasuries may also be limited because previous ADP reports have estimated more private employment gains than the Labor Department subsequently documented. ADP estimated 122,000 new private-sector jobs for May, while the government counted 67,000. For February, ADP estimated 342,000 new jobs, and the government tally was 168,000.
``The history of this number being a good leading indicator is shaky at best,'' Andy Brenner, head of global fixed income at Hapoalim Securities in New York, wrote in an e-mail to clients.
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on Wednesday, July 05, 2006 at 2:15 PM.
