Business & Finance
Market punishes US Treasury bonds after poor auction
NEW YORK : The US Treasury sold $16 billion worth of 30-year long bonds at a poorly received auction on Thursday, with i
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The auction suffered from the extreme volatility sweeping through global financial markets recently, which have been roiled by a damaging political battle over the US budget and a downgrade of the US credit standing.
Investors submitted bids worth 2.08 times the amount on offer, the lowest since February 2009. A measure of foreign demand -- the indirect bidder category -- accounted for just 12 percent of the sale, the lowest since February 2008.
In the open market, the 30-year bond lost five points in price immediately after the dismal auction results were released.
Copyright Reuters, 2011