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Bonds edge up after successful Treasury auction

Bonds edge up after successful Treasury auction

U.S. Treasury prices rose Thursday after the government completed a successful auction of seven-year notes.
Investors signaled that they continued to favor the safety of Treasury bonds after concerns aired by the Federal Reserve Wednesday that the U.S. economy wasn't growing fast enough.
The price of the 10-year Treasury note rose 31 cents per $100 invested Thursday. Its yield, which moves in the opposite direction, fell to 3.38 percent from 3.41 percent.
The U.S. Treasury sold $29 billion in seven-year notes, which were 2.85 times oversubscribed. That was lower than the 2.86 rate in December and the average rate of 2.89 in the last four auctions. However, the notes yielded 2.74 percent, a better rate than the 2.76 percent the government paid at last month's seven-year bond sale.
The sale followed another auction of $35 billion five-year notes on Wednesday. Demand at Wednesday's auction was the highest for five-year notes since last July.
Earlier Thursday, the Federal Reserve Bank of New York bought $5.79 billion in Treasury debt as part of its $600 billion bond-buying program to stimulate the economy. The central has bought $337 billion of Treasury bonds since September.
In a statement released Wednesday after the end of its two-day meeting, the Fed said the economy was continuing to recover but that unemployment was still stubbornly high. The Fed hopes its bond-buying program will hold down interest rates, encourage spending and give the economy a lift.
In other trading, the 30-year bond is up 50 cents to yield 4.56 percent, down from 4.59 late Wednesday. The yield on the two-year Treasury note fell to 0.59 percent from 0.63 percent Wednesday.


Updated : 2021-06-18 13:05 GMT+08:00