US debt prices pare gains as Obama rally fades

LONDON: US debt prices pulled back from peaks seen after Barack Obama was re-elected as US President on Wednesday as European traders saw little major change in policy stemming from the result.

"There was a sharp reaction in the beginning to Obama but now it is coming back," said Alessandro Giansanti, rate strategist at ING in Amsterdam.

"All the policy issues that we had last month or two or three weeks ago are still there, that's why the rally has been short-lived."

Treasury futures were last 15/64 higher at 132-60/64, compared to a high of 133-19/64 seen in Asian trading. Thirty-year US bond yields stood at 2.91 percent versus a low of 2.858 percent.