NEW YORK, April 25 (Reuters) – U.S. government debt prices rose on Monday, helped by the view that even as Federal Reserve approaches the end of its second phase of bond buying, it will hold on to its portfolio — and thus its current level of monetary accommodation — for some time.

The Fed is still in the second phase of quantitative easing, known as QE2, a $600 billion bond purchase program intended to help spur economic growth.

Markets expect the central bank to complete the purchases by mid-year, and many analysts say the Fed will hold the size of its balance sheet steady by reinvesting maturing assets after June to avoid a passive tightening — an issue likely to be discussed at the April 26-27 meeting. [ID:nN1941922]

Fed policy makers who favor accommodation “seem to be in the lead, which leads us to expect no substantial shift in the (policy) statement,” from the central bank’s two-day meeting this week, said David Ader, senior government bond strategist at CRT Capital Group in Stamford, Connecticut.

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Fed QE timelines: r.reuters.com/faq98r

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NEW YORK, April 21 (Reuters) – U.S. government debt prices rose on Thursday, aided by weaker-than-expected data on the labor market and manufacturing.

New U.S. claims for unemployment insurance remained above the key 400,000 level last week, coming in at 403,000, more numerous than economists had forecast. The previous week’s jobless count was also revised up.

The higher-than-expected jobless claims count, taken during the survey week for the nonfarm payrolls report, brought the four-week moving average up to 399,000.

The Philadelphia Federal Reserve’s index of business conditions also reinforced the more sluggish tone for April’s economic data, falling to 18.5 from 43.4 in March. Economists polled by Reuters had looked for an April reading of 37.0.

“The overarching factor supporting bonds is that the market is (scaling back) some of the excessive optimism on growth that started to build in late summer of last year,” said Robert Tipp, chief investment strategist for Prudential Fixed Income, the latter with $240 billion in assets under management, in Newark, New Jersey.

“We saw rates move up from levels that underestimated the potential for economic recovery to levels that overestimated that potential for recovery and underestimated the headwinds the economy faces,” he explained.

Benchmark 10-year notes US10YT=RR were up 6/32 in price near midday during the holiday-shortened trading session, their yields easing to 3.39 percent, down from 3.41 percent on Wednesday, and less than two weeks ago.

NEW YORK, April 21 (Reuters) – U.S. government debt prices rose on Thursday, aided by a higher-than-forecast new jobless claims count for the latest week.

The market retreated from session highs, however, as stocks opened higher, fueled by strong earnings from bellwethers General Electric (GE.N: Quote, Profile, Research, Stock Buzz) and Apple (AAPL.O: Quote, Profile, Research, Stock Buzz) .DJI .SPX .IXIC.

New U.S. claims for unemployment insurance fell last week but not by as much as expected, with bond traders noting they also remained above the key 400,000 level.

New claims totaled 403,000, the Labor Department said, topping Reuters’ forecast for 392,000 new claims.

“(Bond prices rose because) the decline in claims was smaller than expected and the figure for the week before was revised up by 4,000,” said Pierre Ellis, senior economist at Decision Economics in New York.

The prior week’s jobless claims figure was revised up to 416,000 from the 412,000 first reported.

The higher-than-expected new jobless claims count, which was for the survey week for the non-farm payrolls report, brought the four-week moving-average up to 399,000, “consistent with a stalling in the recent improvements in the labor market,” said Ian Lyngen, senior government bond strategist at CRT Capital Group in Stamford, Connecticut. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

NEW YORK (Reuters) – U.S. Treasuries advanced on Friday after government data showed underlying inflation pressures remained subdued in March, soothing bond investors’ inflation fears and giving the Federal Reserve room to pursue policies intended to spur economic growth.

U.S. food and gasoline prices rose, as expected, but the core Consumer Price Index, which excludes those volatile items, rose a scant 0.1 percent, less than economists had forecast.

The view that inflation could remain low was particularly helpful to long-term bonds whose value would be most at risk if inflation flared up.

Thirty-year bonds rose more than a point, their yields easing to 4.49 percent from 4.55 percent on Thursday.

Benchmark 10-year notes rose 20/32, their yields easing to 3.44 percent from 3.50 percent on Thursday.

Five-year TIPS breakevens narrowed and 10-year breakevens contracted, according to Tradeweb.

“The core CPI reading was a friendly surprise to the bond market,” said David Ader, senior government bond strategist at CRT Capital Group in Stamford, Connecticut. That news had more influence on the market than a strong reading on manufacturing in New York State, he said.

NEW YORK, April 14 (Reuters) – U.S. Treasuries erased early gains and turned lower on Thursday as traders cut prices before the Treasury’s 30-year bond sale.

Earlier, prices rose after the Labor Department reported an unexpected jump in the number of filers for initial jobless benefits last week. But those gains were lost as the market headed into the $13 billion 30-year auction, set for 1 p.m. (1700 GMT).

Ten-year notes US10YT=RR, up 10/32 earlier, reversed that gain and fell 4/32, their yields rising to 3.48 percent. In when-issued trading, 30-year bonds yielded 4.55 percent.

“Steam (came) out of the rally. especially ahead of the 30-year bond auction,” said Bank of Tokyo/Mitsubishi UFJ chief financial economist Chris Rupkey.

“The focus is on the 30-year auction and the interest from foreign investors,” said Kevin Giddis, president of fixed income capital markets at Morgan Keegan.

“With the rally over the week, the 30-year is now back almost smack in the middle of the tight range to which it has grown accustomed,” said Cantor Fitzgerald fixed-income rates strategist Justin Lederer, noting yield lows nearing 4.40 percent and yield highs approaching 4.70 percent.

Lederer said many market participants could buy 30-year bonds to enter flattening trades.

NEW YORK (Reuters) – U.S. Treasuries prices rose on Thursday after the government reported an unexpected jump in the number of newly jobless in the latest week.

New U.S. claims for unemployment benefits rose last week, bouncing back above the key 400,000 level and going contrary to economists’ forecasts for a slight drop. A Labor Department official said claims tend to rise the first week of a new quarter.

Ten-year notes, up 4/32 before the report was released, were up 7/32 afterwards, their yields at 3.44 percent versus 3.46 percent on Wednesday.

The government also reported a somewhat higher than expected 0.3 percent rise in core producer prices for March.

“The duo of reports is rather (bond market) friendly if you dig deep enough,” said David Ader, senior government bond strategist at CRT Capital Group in Stamford, Connecticut.

“Claims rose; producer prices were higher on the surface, but excluding energy, they rose just 0.1 percent,” he said.

“The bond market continues to trade better with these reports, with the gains steady across the curve, down about 1.5 basis points in yield,” Ader said.

NEW YORK, April 13 (Reuters) – U.S. Treasuries yields rose on Wednesday as traders cut prices before the U.S. Treasury’s 10-year note sale half an hour before President Barack Obama is to give a speech on the nation’s fiscal challenges.

The Treasury will auction $21 billion in re-opened 10-year notes at 1 p.m. (1700 GMT) in the government’s second coupon sale of the week. It sold three-year notes on Tuesday and will sell 30-year bonds on Thursday.

“The market set-up for today’s 10-year auction should keep the curve in its steepening mode through the supply,” said John Spinello, chief fixed-income technical strategist at Jefferies & Co in New York.

In when-issued trading, the 10-year notes yielded 3.53 percent.

In a talk set for 1:35 p.m. (1735 GMT), Obama will propose tax reform, defense savings and changes in government healthcare spending, offering four steps to address the long-term U.S. deficit and debt. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Full budget coverage: [ID:nUSBUDGET] Analysis of Democrats on budget unveiling [ID:nN12164855] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Bonds opened weaker and briefly conceded more ground when the government released data on March U.S. retail sales that, with revisions to data for past months, presented a firmer sales pictures than some traders had expected in light of recent downward revisions to first-quarter GDP forecasts.

Upward revisions to the past two months’ retail sales figures helped stocks and hurt bonds.

NEW YORK (Reuters) – U.S. Treasuries yields rose and the yield curve steepened on Wednesday as the market made price concessions ahead of the U.S. Treasury’s 10-year note sale later in the session.

The Treasury will auction $21 billion in re-opened 10-year notes at 1 p.m. (1700 GMT) in the government’s second coupon sale of the week. The Treasury sold three-year notes on Tuesday and will sell 30-year bonds on Thursday.

“The market set-up for today’s 10-year auction should keep the curve in its steepening mode through the supply,” said John Spinello, chief fixed-income technical strategist at Jefferies & Co in New York.

In when-issued trading, the 10-year notes to be sold at 1 p.m. ET (1700 GMT) yielded 3.54 percent.

Bonds opened weaker and lost further ground when the government released data on March U.S. retail sales that, with revisions to data for past months, presented a firmer sales pictures than some traders had come to expect in light of some recent downward revisions to first-quarter GDP forecasts.

“March results were slightly better than consensus, with upward revisions to the back two months,” said Jay Feldman, economist at Credit Suisse. “Sales excluding autos and gas are trending at a decent 5.1 percent annual clip.”

“With upward revisions, (it was) a generally firm report,” said David Ader, head of government bond strategy at CRT Capital Group in Stamford, Connecticut.

NEW YORK (Reuters) – Treasuries yields rose on Friday, leaving bonds with a third straight week of losses, the legacy of investors’ willingness to acquire riskier assets for a greater rate of return.

A potentially imminent government shutdown was also on investors’ minds as traders trimmed prices to make room for $66 billion in new three-, 10- and 30-year Treasury notes next week.

The notes and bonds are set to be auctioned even if many government offices are shut and their workers furloughed.

While clouds of uncertainty periodically intervene to send investors back to the shelter of safe-haven government debt, yields have generally headed higher as riskier asset classes have lured investors away from Treasuries, said Robert Tipp, chief investment strategist for Prudential Fixed Income, with $240 billion in assets under management.

Those riskier assets like stocks and commodities have benefited from the Federal Reserve keeping its foot on the monetary accelerator, as well as various forms of fiscal stimulus, including the latest payroll tax holiday, he said.

Benchmark 10-year note yields brushed up against support at 3.59 percent during the session, but eased from that level in late trade, to 3.58 percent.

Yields followed in the path of German bunds, whose yields rose as investors assumed the European Central Bank would continue to raise interest rates after hiking them on Thursday for the first time since 2008, said FTN Financial interest rate strategist Jim Vogel, in Memphis, Tennessee.

NEW YORK, April 6 (Reuters) – U.S. Treasuries yields rose on Wednesday for a second day with particular weakness in longer-dated securities as investors worried that soaring energy prices would lead to inflation.

Breakevens on some Treasury inflation-protected securities, reflecting inflation expectations, rose as unrest in the Middle East and North Africa sent oil prices to 2 1/2-year year peaks. Traders worried that the Federal Reserve would let inflation get a headstart as it tries to spur economic growth.

Inflation erodes the value of Treasuries over time so the 30-year bond US30YT=RR was particularly hard hit, falling more than a point and a half, its yield rising to 4.60 percent from 4.50 percent late on Tuesday.

“If the Fed waits too long on inflation, the back end of the curve will sell off the most,” said Ray Humphrey, senior vice president and senior portfolio manager of government, TIPS, and non-dollar sectors at Hartfort Investment Management, the latter with $159.6 billion in assets under management.

Benchmark 10-year notes US10YT=RR fell 20/32, their yields rising to 3.56 percent from 3.48 percent on Tuesday.

From a policy perspective, rising long-term rates are more problematical for the economy than higher short-term rates because mortgage and corporate finance rates are tied to long-term rates, Humphrey observed.

“The market’s over-arching concern is on unwanted inflation,” said William O’Donnell, head of U.S. Treasury strategy at RBS Securities in Stamford, Connecticut.