BOND REPORT: 2-year Treasury Yield Up For Fifth Day In A Row

By Sunny Oh Features Dow Jones Newswires

10-year Treasurys touch 2.40%

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Treasury yields edged up Tuesday to hover near a six week high as geopolitical concerns that had kept a lid on yields were lifted after anti-euro candidate Marine Le Pen was defeated in the French Presidential Election runoff.

The Treasury yield for the 2-year note rose 1.2 basis point to 1.347%. Bond prices move inversely to yields; one basis point is equal to one hundredth of a percentage point.

The Treasury yield for the 10-year note gained 1.1 basis point to 2.400%, while the 30-year bond, or the long bond, added 1 basis point to reach 3.034%.

Treasury yields have steadily climbed amid abating geopolitical concerns as pro-European centrist Emmanuel Macron beat Le Pen in the runoff of the French presidential election on Sunday. The prospect of her victory had frightened some investors wary of her anti-EU rhetoric, motivating some money managers to shift to U.S. government bonds and assets perceived as safe over the last month.

"The flight-to-quality bid has evaporated on the French election as well as geopolitical events like North Korea," said Tom di Galoma, in a note.

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Traders will look ahead to the Treasury Department's auction of $24 billion worth of three-year government paper at 1 p.m. Eastern. Auction sales can influence prices and yields for the outstanding Treasury market.

A spate of Fed speakers are scheduled to talk on Tuesday. Minneapolis Fed President Neel Kashkari, a voting member of the Federal Reserve, is currently speaking at a discussion at the Minnesota High Tech Spring Conference.

Boston Fed President Eric Rosengren, a nonvoting member, will give a talk on risk management for commercial real estate at 1 p.m. Eastern. Dallas Fed President Robert Kaplan, a voting member, will appear in a moderated discussion held by the Dallas Regional Chamber at 5 p.m. Eastern.

(END) Dow Jones Newswires

May 09, 2017 09:31 ET (13:31 GMT)