Thursday, December 11, 2008

BOND REPORT: Treasurys Gain On Dismal Jobless Data, 10-year Auction

By Deborah Levine

Treasury prices gained ground Thursday, pushing yields lower, following more gloomy data on U.S. employment, and after a successful government auction of 10-year bonds.

The Treasury sold nearly $16 billion of 10-year bonds at a high yield at 2.67% , the lowest-yield ever offered by the government in a 10-year auction, a silver lining of mounting debt to pay for bailouts of banks, mortgage-buying agencies, insurers and possibly, auto manufacturers.

The previously lowest-yield auction was in March, at 3.51%.

The bid to cover ratio stood at 2.44, an indication of firm demand.

No comments:

Post a Comment