By Joseph Adinolfi, MarketWatch
Global bond selloff enters 4th week
Treasury yields rose on Tuesday, hovering just below their highest levels of the year, as a dramatic postelection selloff in global debt looked set to continue for a fourth straight week.
The 10-year yield rose three basis point to 2.341%, while the two-year yield added 1.6 basis point to 1.119%. The 30-year yield gained two basis points to 2.995%. Bond yields rise as prices fall.
Yields climbed after a revised reading on third-quarter economic growth showed the U.S. economy expanded at its fastest pace in more than two years last quarter, further cementing expectations that the Federal Reserve will raise interest rates in December.
"Consumption was strong and the overall GDP was a very good print for the economy. The Fed should be ready to raise rates in December without a doubt," said Tom di Galoma, managing director for Treasury trading at Seaport Global.
Meanwhile, investors braced for a series of potentially market-moving economic data later in the week, culminating in the November jobs report, expected early Friday. The countdown to the report effectively begins on Wednesday, with the release of Automatic Data Processing Inc.'s private-sector jobs growth figures, followed by weekly jobless claims figures on Thursday.
Investors are also looking ahead to the Institute for Supply Management's manufacturing index for November, expected Thursday. Also, members of the Organization of the Petroleum Exporting Countries meet on Wednesday to decide whether to freeze or cut oil production (http://www.marketwatch.com/story/italian-referendum-opec-talks-keep-european-stocks-in-tight-ranges-2016-11-29).
Market-based expectations that the Fed will hike rates later this month have touched 100%, and analysts warned that it would take a truly abysmal set of economic data to shake the market's view.
Read: Here's one reason why the Fed might not hike interest rates in December (http://www.marketwatch.com/story/heres-one-reason-why-the-fed-might-not-hike-interest-rates-in-december-2016-11-16)
"Barring a disastrous loss of jobs, we're doubtful that anything within reason will alter the Fed's intention to hike in two weeks," said Ian Lyngen and Aaron Kohli, a team of fixed-income strategists at BMO Capital Markets, in a research note published Tuesday.
German yields were little-changed, while Italian and Spanish yields sank, as anxieties connected to the Austrian presidential runoff election and Italian constitutional referendum, both set for Sunday, stoked demand for European sovereign debt.
The 10-year bund yield , considered the European benchmark, was flat at 0.211%.
(END) Dow Jones Newswires
November 29, 2016 09:33 ET (14:33 GMT)
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