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Treasuries Fluctuate as U.S. Readies $96 Billion in Note Sales

April 21 (Bloomberg) -- Treasuries fluctuated, with yields trading at almost the highest levels in more than two weeks, as the U.S. prepares to sell $96 billion in coupon-bearing notes starting tomorrow.

The benchmark 10-year note yield dropped earlier as shooting in eastern Ukraine spurred demand for the safety of government debt. Treasuries fell last week as a manufacturing index expanded in April, initial jobless claims were lower than forecast and consumer-price gains in March exceeded estimates. A report today is forecast to show leading indicators rose last month.

“We’re seeing preparation for the supply this week,” said Thomas Tucci, managing director and head of Treasury trading in New York at CIBC World Markets Corp. “People are still looking for this bounce-back in economic activity. The Ukraine story is on the radar.”

Benchmark 10-year yields were little changed at 2.73 percent as of 8:15 a.m. in New York, according to Bloomberg Bond Trader prices. The price of the 2.75 percent note due in February 2024 was 100 7/32.

The yield earlier climbed to 2.76 percent, the most since April 4.

The Bloomberg Global Developed Sovereign Bond Index has gained 3.4 percent this year, versus a 4.6 percent decline in 2013.

The Treasury Department is scheduled to sell $32 billion of two-year notes tomorrow, $35 billion of five-year securities the next day and $29 billion of seven-year debt April 24.

The Conference Board’s index of leading economic indicators probably rose 0.7 percent for March, after a 0.5 percent gain in February, based on a Bloomberg survey of strategists.

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