US treasuries suffer worst start to year since 2003

US treasuries have seen their worst start to a year since 2003 as investors grow more confident over the strength of the US and global economies.

US government securities have shed 0.342% this year, according to Bloomberg, the most since the 0.693% loss seen over a comparable period in 2003. The yield on 10-year US treasuries closed out 2011 at 1.88% but had risen to 2.02% by the end of last week. The rate, while still historically low, has risen as stocks have rallied amid a sense of new year optimism. The S&P 500 has gained 4.6% so far this year on the back of reassuring economic data from the US and easing eurozone concerns following the ECB's first long-term refinancing operation. But the upwards trend for yields could r...