Demand for the relative safety of U.S. bonds waned as Asian stocks rose after Prime Minister Lucas Papademos took charge imitation hermes bags as head of an interim Greek government and Mario Monti, a former European Union commissioner, agreed to be Italy's new leader. The spread 10-year U.S. notes offer over same-maturity German bunds widened to 23 basis points from 17 basis points last week.
"I'm bearish for Treasuries," said Khoon Goh, head of market economics and strategy at ANZ National Bank Ltd. in Wellington. "We have some political stability from Greece and Italy. Now those two governments can get on with the necessary reforms to ensure that the euro-zone crisis can be stabilized."
U.S. 10-year yields rose six basis points to 2.12 percent as of 6:37 a.m. in London, according to Bloomberg Bond Trader prices. The 2 percent security maturing in November 2021 fell 18/32, or $5.63 per $1,000 face amount, to 98 30/32. The rate increased two basis points, or 0.02 percentage point, last week.
The MSCI Asia Pacific Index of shares advanced 1.3 percent, climbing for a second day.
Japan's benchmark 10-year yield increased one basis point to 0.975 percent at Japan Bond Trading Co., the nation's largest interdealer debt broker, after a government report showed the economy expanded for the first time in a year. The yield touched 0.96 percent on Nov. 10, the lowest level in 12 months.
The Federal Reserve plans to purchase as chanel replica much as $2.75 billion of Treasuries due from 2036 to 2041 today, according its website. The central bank announced in September it would replace $400 billion of short-maturity U.S. debt with longer- term securities to contain borrowing costs.
New Leadership
Greece's Papademos said the country's new government must implement decisions from an Oct. 26 European summit. Greece needs to receive a sixth loan installment of 8 billion euros ($11 billion) before it runs out of money in mid-December.
Monti, an economist and adviser to Goldman Sachs Group Inc., will try to reassure investors that Italy can cut its 1.9 trillion euro debt and spur economic growth.
Yields on 10-year U.S. notes are still almost half a percentage point above the record low of 1.67 percent set on Sept. 23.
With the market for U.S. bills poised to shrink by the most since early 2010, a lack of the shorter-term securities will help keep government borrowing costs down.
Bill Shortage
The Treasury Department will issue about $72 billion less debt due within 12 months than it retires in December and January, bond strategists at New York-based JPMorgan Chase & Co. estimate. The contraction partly reflects a surge in corporate tax receipts that the Treasury receives this time of year, lessening its need to borrow.