Bloomberg -- Treasuries fell for the first time in three days as U.S. lawmakers made progress on passing a budget and ending a partial government shutdown, curtailing demand for the relative safety of debt.
A bipartisan group of lawmakers is proposing to House Republican and Democratic leaders a compromise to end the stalemate that brought nonessential services to a halt.
“It won’t go on forever,” said Kazuaki Oh’e, a debt salesman at CIBC World Markets Japan Inc. in Tokyo. “Nobody’s saying the U.S. Treasury is going to go bankrupt.”
Ten-year U.S. yields increased two basis points, or 0.02 percentage point, to 2.62 percent as of 9:29 a.m. in Tokyo, Bloomberg Bond Trader data show. The price of the 2.5 percent note due in August 2023 fell 1/8, or $1.25 per $1,000 face amount, to 98 31/32.
BlackRock’s Inc.’s Larry Fink and Pacific Investment Management Co.’s Bill Gross said the U.S. debt standoff will be resolved without a default.
The congressional dispute will be resolved “very rapidly,” Fink said at a Beverly Hills, California, event. Gross said a default is “not a realistic proposition.”
