Three-year notes auction
Published February 7th, 2007
U.S. Treasuries were little changed in Asia on Wednesday, with the benchmark 10-year yield keeping its distance from a 5 1/2-month high thanks to solid demand at an auction of three-year notes in the previous session.
Treasury prices climbed in New York on Tuesday after a successful $16 billion sale of three-year notes boosted the market’s confidence that more refunding auctions lined up this week will go over well.
Weak figures on employment and manufacturing have helped to quash speculation that U.S. rates may soon rise, keeping the 10-year yield down from levels last seen in August, and dealers said this was making investors more comfortable about buying.
“We’re seeing a slight reversal of the sell-off from the past while,” said a dealer at a U.S. investment bank, adding that the market had concluded it had got ahead of itself in speculating that the Federal Reserve may lift rates.
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