Long bond prices fall after Fed buybacks

NEW YORK: US Treasuries erased most of their earlier price gains on Thursday and long bond prices fell after the Federal Reserve completed its purchase of debt as part of its Operation Twist program.

Treasuries are often bid up before the Fed buys bonds in the program that is designed to lower long-term borrowing costs and stimulate the economy.

The Fed bought $1.95 billion in bonds due 2040 and 2041 on Thursday, from $6.96 billion that was submitted for purchase.

Benchmark 10-year Treasuries were last up 3/32 in price to yield 1.82 percent, after earlier trading as low as 1.79 percent. Thirty-year bonds fell 1/32 in price to yield 2.93 percent, after earlier falling as low as 2.89 percent.