Treasuries declined, propelling the yields on the 30-year bond to their highest level since May, as data indicated that the U.S. economy improved in July and investors run to buy risky assets. Government reports on building permits and jobless claims indicated that the U.S. economy might finally be picking up, which in turn sparked talks among investors that we won’t see further quantitative easing any time soon. The yield on the 30-year bond climbed four basis points, or 0.04%, to 2.96%. The yield moved to 2.98% earlier in the session, which is its highest level since May 14th. The price of the 2.75% security, which is due in August 2042 dropped 25/32, or $7.81 per $1,000 of face amount, to 95 27/32. The 21-point rise in the yield of the 30-year bond, which we witnessed in the last three days is the biggest one since the June 4th-to-June 6th period when the yield rose by 22 basis points. The yield on the benchmark 10-year bond advanced three basis points to 1.84%, after touching its highest level since May 11th.
