Thursday, March 12, 2009

Treasurys rise after 30-year note auction

Treasury prices rise after gov't auctions $11 billion in 30-year bonds to strong demand

NEW YORK (AP) -- Treasury prices rose Thursday after the government auctioned $11 billion in 30-year bonds to robust demand.
The auction got nearly two-and-a-half as many bids as notes available. The Treasury Department has been selling debt at a record pace as it tries to fund the government's stimulus and bailout efforts. Just this week, it auctioned $63 billion in long-term government securities.

As the stock market rallied, Treasury prices rose, too.

The benchmark 10-year Treasury note rose 14/32 to 99 1/32. Its yield fell to 2.86 percent from 2.91 percent late Wednesday. Prices move opposite yields.
The two-year note rose 1/32 to 99 23/32, and its yield fell to 1.01 percent from 1.02 percent.
The 30-year bond rose 30/32 to 98 1/32, and its yield fell to 3.61 percent from 3.67 percent.
The yield on the safe-haven three-month Treasury bill slipped to 0.20 percent from 0.22 percent. The discount rate was 0.21 percent.
The cost of lending between banks dipped slightly. The British Bankers' Association said the London Interbank Offered Rate, or Libor, on three-month loans in dollars fell 0.01 percentage points to 1.32 percent. Libor is down significantly from its peak last fall, but up from its mid-January low of 1.08 percent.

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