What's bugging treasury bonds

Treasury auctions went poorly last week and 10‐year yields have moved up to the highest levels since June last year (when yields touched 4%). Currently trade at 3.78.
What has diminished the demand for Treasuries? John Ryding has an opinion.  He is the cheif economist at RDQ Economics and is frequently a guest on CNBC. From his conference call:
Greek Contagion: The focus on Greece’s fiscal ratios and the attempts to negotiate a support package may have resulted in some Mediterranean contagion washing up on US shores.

Buffet bonds trading through two‐year

Healthcare: Passage of healthcare takes US one step closer to fiscal disaster. Joke that it is scored as a deficit reduction package. New entitlement spending will likely exceed projections (as Medicare did before—in 1965 projection, Medicare Part A spending for 1990 was $9 billion but it turned out at $66 billion). Savings on Medicare unlikely to materialize.

End of Fed Purchase Programs: Fed MBS and GSE debt purchase program ends this week. These programs, along with Treasury purchases, have removed $1.7 trillion of debt from the

Stronger Data Ahead: Recovery seen picking up momentum, added to by weather rebound and temporary Census hiring. Payroll employment seen at 300K in March.


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