Treasuries suffer first quarterly loss since 2013

FXStreet (Mumbai) – The Greece-led safe haven demand for the Treasuries was not enough to counter the rate hike bets in the US, leading to a first quarterly loss in Treasuries since 2013.

The Bloomberg U.S. Treasury Bond Index has declined 1.8% since March 31. The benchmark 10-year treasury yield in the US currently trades at 2.349%, up 1.9 basis points. The treasuries fell, pushing the yields higher even though Greek PM called for a referendum on July 5 on the austerity measures demanded by creditors.

The yields rose as the Federal Reserve policy statement in June sent out a clear message that the rates could be hiked twice this year.

The treasuries rose to session highs in early US trading, tracking the rise in the stock futures on hopes of a last minute Greek deal.

The Greece-led safe haven demand for the Treasuries was not enough to counter the rate hike bets in the US, leading to a first quarterly loss in Treasuries since 2013.

(Market News Provided by FXstreet)