US Bonds steady after auction
Published July 26th, 2007
U.S Treasuries were flat on Wednesday, after an auction of two-year notes attracted lukewarm interest and stocks surrendered their gains on concerns about financing for takeovers.
The fall in equities on credit concerns, sparked by news that Chrysler Corp. had postponed a $12 billion auto loan deal, could see bonds attract a flight-to-quality bid, strategists said.
“It (auction) came slightly cheaper than expectations. Nothing substantial at all. There’s some short-term weakness at the front of the curve over the next 24 hours because we have 5-years on sale later this week,” said Adam Brown, head U.S. Treasury trading Barclays Capital in New York.
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