| Ten-year notes have the potential to rise above the 4.685 percent to 4.695 percent range, the highs of 2005, USB Securities bond strategist Bill O'Donnell said in a report yesterday.
Similar key levels for other major global debt markets ''have already been broken which, in combination with the negative momentum in the 10-year, leaves reasonable confidence that we can test and perhaps break behind these supports,'' O'Donnell wrote in the report. Ten-year Treasuries also fell this week on concern international investors will demand higher yields after the European Central Bank raised interest rates. Some traders are also betting the Bank of Japan will shift policy at a two-day meeting that starts March 8 and raise borrowing costs from zero by year- end. ''There's a chronic risk to the bond market from global economic recovery,'' Lehman's Harris said. ''Probably the most potent story is Japan.'' |
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