Wednesday, 18 April 2012 20:57
NEW YORK: US Treasuries rose on Wednesday as the prospect of a longer-term Spanish debt auction made safe-haven US Treasuries a popular investment choice.
An auction of 12- and 18-month Spanish debt overnight was considered a success, but a more challenging longer-term debt sale looms.
Spain will sell two- and 10-year bonds on Thursday and investors see those sales as a better test of demand for the country's debt.
"The US Treasury market is looking for direction from the situation in the European periphery -- in particular at the upcoming auctions Spain," said Eric Stein, vice president and portfolio manager at Eaton Vance Investment Managers.
Spain sold short-term securities earlier, noted Jason Brady, portfolio manager and managing director at Thornburg Investments, with $73 billion in assets under management, in Santa Fe, New Mexico. "But the 10-year Spanish debt sale is a much bigger deal because those maturities are outside the window of the ECB's ...