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 reverse this week when the Federal Reserve will publish rate forecasts by individual members for the first time.

It will reveal each district bank's annual forecast for the federal funds rate until 2015, as well as when they expect rates to increase for the first time, and is expected to indicate a further long-term commitment to low rates.