By Richard Leong and Luciana Lopez
NEW YORK, April 11 (Reuters) - U.S. Treasuries prices rose
on Thursday as a three-day rise in yields lured investors to buy
government debt on the open market and a $13 billion auction of
30-year bonds, the final part of this week's $66 billion in
Data on the 30-year Treasuries auction suggested that the
anticipated surge in U.S. bond demand from Japanese banks,
insurers and pension funds have yet to materialize.
The U.S. bond market rallied last week after the Bank of
Japan announced a bold $1.4 trillion asset purchase program
aimed to stimulate its sluggish economy. The news sent Japanese
government debt yields to record lows and fed bets Japanese
investors will scramble for Treasuries and other higher-yielding
Investors returned to U.S. government debt on Thursday after
a sell-off earlier this week drove yields higher, said Ian
Lyngen, a senior government bond strategist at CRT Capital Group
in Stamford, Connecticut.
The sell-off propelled longer-dated U.S. yields from their
lows of the year back to levels prior to last Friday's
disappointing U.S. government payroll report.
'Once we got back to the top of the yield range, at 1.81 in
10-years, a little bit of buying interest has emerged,' Lyngen
Thursday's 30-year bond sale fetched lukewarm demand,
although indirect bidders that include foreign central banks
accounted for 31.44 percent of the purchases, the lowest in six
The overall bidding for the second reopening of the bond
issue due in February 2043 came in at 2.49, up from 2.43 at the
March auction but below its long-term average.
'We saw very little evidence of huge foreign buying at this
auction and our analysis suggests it will occur over time rather
than be extremely front-loaded,' Aaron Kohli, interest rate
strategist at BNP Paribas wrote in a note after the auction.
The lackluster auction briefly shaved bond market's gains in
the afternoon before another bout of bargain-hunting emerged.
Benchmark 10-year Treasury notes last traded
4/32 higher to yield 1.790 percent, down 1.5 basis points from
late on Wednesday.
The 30-year bond last traded 5/32 higher to
yield 2.998 percent, down 0.7 basis points from Wednesday.
Earlier, Treasuries prices moved little on data showing the
number of Americans filing new claims for unemployment benefits
fell more than expected last week.
While analysts said seasonal factors such as Easter played a
role, the figures could soothe some fears that the labor market
recovery could be stumbling after weaker-than-expected payrolls
figures last week pushed prices higher.
(Additional reporting by Luciana Lopez; Editing by Diane Craft)
((email@example.com)(+1 646 303 6313)(Reuters
Keywords: MARKETS USA BONDS/
(-------MARKET SNAPSHOT AT 2:01 p.m. EDT (1801 GMT)------- June T-Bond 146-06/32 (+08/32) June 10-Year note 132-18/32 (+04/32) Change vs Current Nyk yield Three-month bills 0.065 (-0.01) 0.066 Six-month bills 0.095 (unch) 0.096 Two-year note 100-01/32 0.234 Five-year note 100-04/32 (+01/32) 0.726 10-year note 101-28/32 (+04/32) 1.791 30-year bond 102-16/32 (+05/32) 2.998 DOLLAR SWAP SPREADS LAST Change U.S. 2-year dollar swap spread 13.75 (-0.50) U.S. 3-year dollar swap spread 13.50 (-0.25) U.S. 5-year dollar swap spread 17.25 (unch) U.S. 10-year dollar swap spread 16.25 (-0.25) U.S. 30-year dollar swap spread -6.75 (-0.25))
Copyright Thomson Reuters 2013. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.