Wednesday, 11 July 2012 01:04
NEW YORK: US government debt prices edged up on Tuesday as safe-haven bids on nagging concerns about Europe's fiscal woes and the struggling US economy offset new debt sales by the Treasury.
The Treasury sold $32 billion in new three-year notes on Tuesday at a high yield of 3.67 percent, the first in $66 billion in sales scheduled for this week.
A $21 billion sale of ten-year notes on Wednesday is expected to generate relatively strong demand as US government bonds benefit from a lack of alternatives for investors seeking relatively low-risk debt.
"The demand for Treasuries far outstrips the supply. Treasuries are the last man standing in regards to safe assets," said Lou Brien, market strategist at DRW Trading in Chicago.
Concerns that Europe will fail to contain its debt crisis have led investors to seek out US debt after the euro slumped to a new two-year low against the dollar.
Euro zone ministers ...