ng you're getting a little bit of arelief trade, given how much stocks have fallen in the lastcouple of weeks," said James Combias
Wholesale NBA Jerseys as expected, head of bond trading atMizuho Securities in New York.
The retreat in Treasuries was part of that relief, traderssaid.
Marty Mitchell, chief market technician at Stifel Nicolausin Baltimore, said the 30-year bond yield was close to animportant technical level which, if reached
favourite blog , would signal amore significant move toward higher yields.
"A close above 4.30 percent would signal a deepercorrection in the market," he said.
The 30-year bond US30YT=RR last traded 11/32 lower inprice to yield 4.32 percent, up from 4.297 percent at Monday'sclose. (Additional reporting by Richard Leong; Editing by KennethBarry) (emily.flitter@thomsonreuters.com; Tel: +1-646-223-6310;Reuters messaging; emily.flitter.reuters.com@reuters.net))
* Yields rise on reduced safe haven bid, planned MBS sales
* Some investors see yields too low on safe haven bid
* Debt ceiling, deficit concerns could resurface
(Adds quotes, updates prices
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By Karen Brettell
NEW YORK, March 21 - U.S. Treasuries prices fellon Monday as progress in solving Japan's nuclear crisis andWestern air strikes in Libya reduced safe haven demand andsigns emerged that a one-month rally may be nearing an end.
The debt extended losses after the U.S. TreasuryDepartment said it will begin selling its $142 billionportfolio of the agency-guaranteed mortgage-backed securitiesthat it acquired in 2008 and 2009 amid the financial crisis, ata rate of around $10 billion a month. For more
favourite blog , see[ID:nN21186232]
"It was a bit of a surprise," though will likely be easy todigest
favourite blog , said Tom Tucci, head of government bond trading at RBCCapital Markets in New York.
The statement, nonetheless, helped focus investorsattention on yields, which some say are too low relative to animproving economy and the impending end of the FederalReserve's $600 billion quantitative easing program in June.
"We spent a week and a half at levels that wereunsustainable because they weren't based on economicfundamentals, they were based on fear," said Tucci. "Now someof the fundamentals are starting to come back into place."
Prices fell on Monday as Japan tried to reverse overheatingand avoid a meltdown in nuclear reactors and Western airstrikes weakened the advance of Muammar Gaddafi's forces inLibya.
Fears over an nuclear disaster in Japan and politicalunrest in the Middle East and North Africa have sent benchmark10-year note yields to their lowest levels in three months.
The notes US10YT=RR fell 19/32 in price on Monday toyield 3.35 percent, up from 3.27 percent on Friday. The yieldsfell as low as 3.14 percent last week, and are down from ashigh as 3.77 percent in early February.
Two year notes US2YT=RR were last down in 3/32 price toyield 0.65 percent, up from 0.59 percent late on Friday, andfive-year notes US5YT=RR fell 14/