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U.S. Treasuries Fall After Government Sells $13 Bln of Debt
Feb. 8 (Bloomberg) -- U.S. Treasuries fell after the government sold $13 billion of 10-year notes. Treasuries also weakened on reports that former Federal Reserve Chairman Alan Greenspan may have made ``bullish'' remarks about the economy.
``The market is definitely reacting to Greenspan's private speech last night that he believes the economy is stronger than the market believes, and that given the structure of rates the Fed has to go farther than normal,'' said Glen Capelo, a Treasury trader at RBS Greenwich Capital in Greenwich, Connecticut.
The yield on the benchmark 10-year note rose 3 basis points, or 0.03 percentage point, to 4.59 percent at 1:15 p.m. in New York, according to bond broker Cantor Fitzgerald LP. The yield, which moves inversely to the note's price, is up from the low this year of 4.29 percent on Jan. 18. The price of the 4 1/2 percent note due in November 2015 fell more than 3/16, or $1.88 per $1,000 face amount, to 99 1/4.
Financial news network CNBC reported that former Greenspan may have ``made some very bullish comments on the economy'' during a visit to Lehman Brothers Holdings Inc. late yesterday. The two-year note's yield rose 4 basis points to 4.65 percent.
At today's sale, there were $2.32 worth of bids for every $1 sold, compared with $2.19 worth at the last auction in December. For the past 12 auctions, the bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered for sale, averaged $2.39.
Auction Yield
The securities were sold at a yield of 4.54 percent, below the 4.55 percent pre-auction average estimate of eight bond- trading firms surveyed by Bloomberg News.
Indirect bidders, which include foreign central banks, bought 40.8 percent of the securities, compared with 17.1 percent in December and 55.6 percent in November. Since the Treasury Department started releasing bidder-participation figures in May 2003, the share of 10-year note sales won by indirect bidders has ranged from 2.9 percent to 55.6 percent.
The Treasury is auctioning $48 billion of debt this week in its so-called quarterly refunding. It sold $21 billion of three- year notes yesterday and will sell $14 billion of 30-year bonds tomorrow. The bond sale will be the first since 2001.
Treasuries fell yesterday after the three-year note sale as the securities garnered the least bids in a year and demand from investors including foreign central banks slid.
Feb. 8 (Bloomberg) -- U.S. Treasuries fell after the government sold $13 billion of 10-year notes. Treasuries also weakened on reports that former Federal Reserve Chairman Alan Greenspan may have made ``bullish'' remarks about the economy.
``The market is definitely reacting to Greenspan's private speech last night that he believes the economy is stronger than the market believes, and that given the structure of rates the Fed has to go farther than normal,'' said Glen Capelo, a Treasury trader at RBS Greenwich Capital in Greenwich, Connecticut.
The yield on the benchmark 10-year note rose 3 basis points, or 0.03 percentage point, to 4.59 percent at 1:15 p.m. in New York, according to bond broker Cantor Fitzgerald LP. The yield, which moves inversely to the note's price, is up from the low this year of 4.29 percent on Jan. 18. The price of the 4 1/2 percent note due in November 2015 fell more than 3/16, or $1.88 per $1,000 face amount, to 99 1/4.
Financial news network CNBC reported that former Greenspan may have ``made some very bullish comments on the economy'' during a visit to Lehman Brothers Holdings Inc. late yesterday. The two-year note's yield rose 4 basis points to 4.65 percent.
At today's sale, there were $2.32 worth of bids for every $1 sold, compared with $2.19 worth at the last auction in December. For the past 12 auctions, the bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered for sale, averaged $2.39.
Auction Yield
The securities were sold at a yield of 4.54 percent, below the 4.55 percent pre-auction average estimate of eight bond- trading firms surveyed by Bloomberg News.
Indirect bidders, which include foreign central banks, bought 40.8 percent of the securities, compared with 17.1 percent in December and 55.6 percent in November. Since the Treasury Department started releasing bidder-participation figures in May 2003, the share of 10-year note sales won by indirect bidders has ranged from 2.9 percent to 55.6 percent.
The Treasury is auctioning $48 billion of debt this week in its so-called quarterly refunding. It sold $21 billion of three- year notes yesterday and will sell $14 billion of 30-year bonds tomorrow. The bond sale will be the first since 2001.
Treasuries fell yesterday after the three-year note sale as the securities garnered the least bids in a year and demand from investors including foreign central banks slid.