Business & Finance

US debt lower, investors brace for Greek vote

LONDON : US Treasuries were flat to lower on Wednesday as investors braced for a vote by the Greek parliament on auste

Published June 29, 2011 Updated June 29, 2011 11:27am

1 min

By Abdul Ahad

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* US Treasuries tracked German government bonds lower, pushing yields on 10-year bond yields 1.5 basis points higher to 3.05 percent and up 5.6 basis points to 1.64 percent on the five-year .

* All eyes were on Europe, where there is growing optimism that the Greek parliament will vote through key austerity measures that would secure the country further funding and avoid imminent bankruptcy. Prospects for a "yes" vote rose when one of three rebels in the governing PASOK party changed heart and said he would vote in support of the measures. .

* "There is some guarded optimism about the Greek vote today," Philip Marey, US strategist at Rabobank said. "If the austerity measures proposed ... are rejected then this will lead to a sharp fall in risky assets and a flight to safety, so in that case US Treasury yields will fall dramatically."

* The market also traded lower ahead of a sale of 7-year paper this session, after Tuesday's weakest sale of five-year Treasury notes in a year.

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