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Please notice CNBC changed the title of the article from the bold below to what you see here.
http://www.cnbc.com/id/35348388
The original article & title............
Failed 30-Year Auction Closes Rough Week; Treasurys Fall
Published: Thursday, 11 Feb 2010 | 1:12 PM ET Text Size By: CNBC.com with wires
An anemic government auction of 30-year bonds closed out a weak round of debt sales with low demand on the far end of the debt yield curve.
The $25 billion auction fetched a whopping 4.72 percent high yield on weak demand, reflected in a 2.36 bid-to-cover ratio that compares demand for each dollar auctioned. The average is about 2.50.
Direct bidding, or Treasurys bought directly through the government, was 24 percent, considered a high number and indicative of weak foreign demand when compared to the indirect bid done through dealers of 29 percent.
Treasurys immediately sold off on the news after being modestly lower earlier in the session.
The benchmark 10-year note yield jumped to 3.75 percent while the 30-year long bond yield moved to 4.69 percent, well above the 4.62 percent from late Wednesday.
Investors earlier paid little attention to lower than expected weekly jobless claims.
The number of U.S. workers filing new applications for jobless benefits fell to a seasonally adjusted 440,000 for the week ended Feb. 6, below analysts' expectations for a reading of 465,000 and down from the previous week's 483,000. The market largely shrugged the data off however.
"The decline was a little larger than the market was expecting, said Kim Rupert, managing director of global fixed income analysis at Action Economics in San Francisco, adding "it appears that you are clearing out some of that administrative spike you saw earlier in claims."
The weak sale was expected to be met with thin demand following a rather tepid reception for three-year and 10-year notes on Tuesday and Wednesday.
Investors were also keeping a wary eye on developments on the Greek fiscal situation in Europe, where a European Union source said Greek bond purchases by euro zone state-owned banks was one of the options being considered in an EU plan to support Greece.
Worries over a possible Greek debt default, and concern over potential defaults in other debt-laden European countries, bolstered U.S. Treasury debt prices late last week.
—Reuters contributed to this report.
http://www.cnbc.com/id/35348388
The original article & title............
Failed 30-Year Auction Closes Rough Week; Treasurys Fall
Published: Thursday, 11 Feb 2010 | 1:12 PM ET Text Size By: CNBC.com with wires
An anemic government auction of 30-year bonds closed out a weak round of debt sales with low demand on the far end of the debt yield curve.
The $25 billion auction fetched a whopping 4.72 percent high yield on weak demand, reflected in a 2.36 bid-to-cover ratio that compares demand for each dollar auctioned. The average is about 2.50.
Direct bidding, or Treasurys bought directly through the government, was 24 percent, considered a high number and indicative of weak foreign demand when compared to the indirect bid done through dealers of 29 percent.
Treasurys immediately sold off on the news after being modestly lower earlier in the session.
The benchmark 10-year note yield jumped to 3.75 percent while the 30-year long bond yield moved to 4.69 percent, well above the 4.62 percent from late Wednesday.
Investors earlier paid little attention to lower than expected weekly jobless claims.
The number of U.S. workers filing new applications for jobless benefits fell to a seasonally adjusted 440,000 for the week ended Feb. 6, below analysts' expectations for a reading of 465,000 and down from the previous week's 483,000. The market largely shrugged the data off however.
"The decline was a little larger than the market was expecting, said Kim Rupert, managing director of global fixed income analysis at Action Economics in San Francisco, adding "it appears that you are clearing out some of that administrative spike you saw earlier in claims."
The weak sale was expected to be met with thin demand following a rather tepid reception for three-year and 10-year notes on Tuesday and Wednesday.
Investors were also keeping a wary eye on developments on the Greek fiscal situation in Europe, where a European Union source said Greek bond purchases by euro zone state-owned banks was one of the options being considered in an EU plan to support Greece.
Worries over a possible Greek debt default, and concern over potential defaults in other debt-laden European countries, bolstered U.S. Treasury debt prices late last week.
—Reuters contributed to this report.
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