#TREASURIESPrices

[tonetteffnconwa-blog]

TREASURIES-Prices drop on report of euro zone fund boost

* Germany, France agree on bailout fund boost-report* US 30-year bonds erase gains, fall nearly 1 pointBy Walter BrandimarteNEW YORK, Oct 18 (Reuters) - U.S. Treasury debt prices ended lower on Tuesday, reversing earlier gains, as renewed optimism about a solution to the euro zone debt crisis triggered a rally on Wall Street.Investors sold off safe-haven assets and rushed into stocks, driving the S&P 500 over 2 percent higher, after Britain's Guardian newspaper said France and Germany had reached an agreement to boost the euro zone rescue fund to 2 trillion euros.The report, published on the paper's website, said the liquidity injection into the fund would be part of a "comprehensive plan" to solve the region's crisis to be endorsed at a meeting of European leaders this weekend.Many investors, however, were skeptical about the chances of a quick solution to the euro zone debt problems after German Chancellor Angela Merkel said earlier on Tuesday more steps would be necessary to overcome the crisis."We came in today with a strong bid," said David Ader, head of government bond strategy at CRT Capital Group. "Then this last report hit from the Guardian saying that they came to an agreement, completely running against the grain of what we were hearing earlier from Merkel."Trading volumes were just around average, he said, in a sign that investors were not selling on conviction."We don't know if this is accurate, we don't know where this is coming from. We're left in this difficult position," Ader said.Benchmark 10-year Treasury note prices fell 8/32 in price to yield 2.18 percent. Yields had fallen as low as 2.08 percent earlier, their lowest since Oct. 7, as a warning from Moody's on France's rating outlook increased investors' aversion to risk.U.S. 30-year bonds were down 31/32, yielding 3.17 percent compared with 3.16 percent on Monday.Long bonds had jumped more than 2 points in price on Monday after German Finance Minister Wolfgang Schaeuble cautioned that this weekend's summit of EU leaders would not yield a "definitive solution" to the region's debt crisis.

[vernettahtphorw-blog]

TREASURIES-Prices advance for 2nd day on Europe caution

* Moody's warning on France weighs on Treasuries* Goldman Sachs reports deeper-than-expected lossBy Gertrude Chavez-DreyfussNEW YORK, Oct 18 (Reuters) - U.S. Treasuries climbed in a choppy session on Tuesday as Moody's issued a warning on France's credit rating and expectations faded for a definitive solution to the European debt crisis at a summit this week.Benchmark yields fell to their lowest in two weeks, but have since staged a comeback. Thirty-year yields, meanwhile, were also under pressure, sliding to their lowest in about a week.Volume was reportedly dominated by speculative accounts, traders said, but with real money names supposedly on the bid in the three- to seven-year maturities.Treasury prices once again tracked movements in the U.S. stock market, which recovered from an earlier drubbing caused by a deeper-than-expected loss at U.S. investment bank giant Goldman Sachs and disappointing guidance at technology bellwether IBM ."There's an overall sense of caution," said Tom Porcelli, chief economist at RBC Capital Markets in New York."While some people are reconsidering their stance of an absolute worst-case scenario (on the global economy) and it's a stance that we don't necessarily agree with, for the most part the market still has a very cautious approach where people are not willing to go on a limb one way or the other."Gains in Treasuries gathered pace after rating agency Moody's said it may slap a negative outlook on France's triple-A rating in the next three months if the country fails to make progress on crucial fiscal and economic reforms..Enthusiasm has waned for a meeting of finance ministers and central bankers of the Group of 20 major economies on Oct. 23 that was initially expected to come up with a comprehensive solution to Europe's debt troubles.On Monday, German Finance Minister Wolfgang Schaeuble poured cold water on any positive view about the summit. he said European governments will not present an ultimate solution for the sovereign debt crisis at the weekend meeting.News on Tuesday suggesting German Chancellor Angela Merkel expects European leaders to produce a "work plan" for Greece at the EU summit did little to re-ignite hopes for a more positive outcome at the summit."It seems that people are not counting on the European Union summit," for a solution on the euro zone's fiscal problems, said Suvrat Prakash, interest rate strategist at BNP Paribas in New York.Treasury prices earlier pared gains after a bigger-than-expected increase in U.S. producer prices for September, their largest rise in five months, and strong earnings from Bank of America Corp , the largest U.S. bank by assets. For more on producer prices, see {ID:nN1E79H0CB].That dented gains racked up after a steeper-than-expected loss at U.S. investment bank giant Goldman Sachs. U.S. 30-year bond prices jumped more than a point after the release of the bank's earnings."The loss at Goldman wasn't expected to be this steep and raises a whole bunch of questions on banking issues," said David Ader, head of government bond strategy at CRT Capital in Stamford, Connecticut."The loss is on asset markdowns. So there is this sort of price recognition of the uncertainty factor of basically what do banks own."The bias in the Treasuries market has therefore remained positive, despite venturing into negative territory twice in the New York session, with the appeal of U.S. government bonds enhanced by a slew of negative news around the world including weaker-than-forecast gross domestic product growth in China.In midday trading, benchmark 10-year Treasury prices rose 9/32 in price to yield 2.12 percent compared with 2.18 percent late on Monday. Yields fell as low as 2.08 percent, their lowest since Oct 7.U.S. 30-year bonds were up 13/32, yielding 3.11 percent versus 3.16 percent on Monday.

[carliecevance-blog]

TREASURIES-Prices drift higher in generally risk-off market

* Moody's warning on France weighs on Treasuries* Goldman Sachs reports deeper-than-expected lossBy Gertrude Chavez-DreyfussNEW YORK, Oct 18 (Reuters) - U.S. Treasuries edged higher on Tuesday, pushing benchmark yields to their lowest in two weeks, as Moody's issued a warning on France's credit rating and expectations faded for a definitive solution to the euro zone debt crisis at the European Union summit later this week.Treasury prices, however, pared gains after a bigger-than-expected increase in U.S. producer prices for September, their largest rise in five months, and strong earnings from Bank of America Corp , the largest U.S. bank by assets. For more on producer prices, see {ID:nN1E79H0CB].That dented gains racked up after a steeper-than-expected loss at U.S. investment bank giant Goldman Sachs . U.S. 30-year bond prices jumped more than a point after the release of the bank's earnings.The bias in the Treasuries market, however, remained positive, with the appeal of U.S. government bonds enhanced by a slew of negative news around the world including weaker-than-forecast gross domestic product growth in China."Risk aversion came back because everybody is focused on Europe," said Suvrat Prakash, interest rate strategist at BNP Paribas in New York."It seems that people are not counting on the European Union summit," for a solution on the euro zone's fiscal problems. "Added to the mix was the Chinese GDP overnight which came in weaker than expected."Gains in Treasuries gathered pace after rating agency Moody's said it may slap a negative outlook on France's triple-A rating in the next three months if the country fails to make progress on crucial fiscal and economic reforms..In addition, enthusiasm has waned for a meeting of finance ministers and central bankers of the Group of 20 major economies on Oct. 23 that was initially expected to come up with a comprehensive solution to Europe's debt troubles.On Monday, German Finance Minister Wolfgang Schaeuble poured cold water on any positive view about the EU summit. he said European governments will not present an ultimate solution for the sovereign debt crisis at the weekend meeting.In mid-morning trading, benchmark 10-year Treasury prices rose 13/32 in price to yield 2.11 percent compared with 2.18 percent late on Monday. Yields fell as low as 2.08 percent, their lowest since Oct 7.Yields on 10-year notes were not far from 2.27 percent, the 38.2 percent retracement of a July to September rally in the maturity. More support is clustered near 2.3 percent to 2.31 percent, an area containing a few daily highs hit in late August.U.S. 30-year bonds were up 23/32, yielding 3.09 percent versus 3.16 percent on Monday.

[stormycojmcmich-blog]

TREASURIES-Prices undercut by higher stocks, retail sales

* Optimism over Europe despite Spain downgradeBy Chris ReeseNEW YORK, Oct 14 (Reuters) - U.S. Treasury prices fell on Friday as stocks climbed and stronger-than-expected U.S. retail sales last month undermined the safe-haven allure of U.S. government debt.A perception that Europe was taking aggressive steps to stem its debt crisis, as Europe's finance ministers prepare to meet counterparts from the Group of 20 nations, also undermined the safety appeal of Treasuries.Retail sales rebounded in September at the fastest pace in seven months, rising 1.1 percent from a month earlier and adding to recent evidence the U.S. economy may still be recovering, albeit quite slowly."The outlook is good and getting better by the day. Risk is back on," said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York.The better-than-forecast sales figures emboldened those who are looking for the U.S. economy to stave off another recession, bolstering stock futures and undermining bond prices.Retail sales were "much better than expected. The September number was higher-than-expected and we had upward revisions in July and August. It's well balanced with a lot of categories going up," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.Benchmark 10-year notes were trading 20/32 lower in price to yield 2.26 percent, up from 2.19 percent late Thursday, while 30-year bonds were 1-16/32 lower to yield 3.23 percent from 3.15 percent.The optimism that Europe would be able to contain its debt crisis was tempered somewhat by Standard and Poor's ratings cut of Spain on Friday.

[nanceytzjwomble-blog]

TREASURIES-Prices gain after recent losses; downturn intact

* Europe remains in focus, better U.S. data shrugged off* Bearish trend in Treasuries still seenBy Gertrude Chavez-DreyfussNEW YORK, Oct 13 (Reuters) - U.S. Treasury debt prices advanced on Thursday, with 30-year bonds snapping a six-session losing streak as a rally in stocks lost momentum after soft earnings from JPMorgan Chase & Co and concerns about Europe's plan to recapitalize its banks.Retail buying also helped, traders said, with real money accounts spotted in the five- to seven-year sector.An auction of $13 billion in U.S. 30-year bonds attracted strong interest, with a record low yield of 3.120 percent compared with market forecasts of 3.157 percent. That propelled 30-year bond prices even higher and pushed yields to session lows.The bid-to-cover ratio, which gauges demand by comparing total bids with the amount offered, was 2.94, above the 12-month average.Many had expected robust demand at the auction anyway given how much 30-year bonds have cheapened in recent sessions. And for some, the Federal Reserve's buying of long bonds suggested that these securities offered good value.Overall, most analysts have pinned Thursday's gains in the Treasury market on the slide in stocks and any caution that has resurfaced could be short-lived."What we're seeing is a classic bond market response to modest equity market weakness," said Jonathan Lewis, chief investment officer, at Samson Capital Advisors in New York, with assets under management of $7.7 billion."This is a stocks down, bonds up trade, with no material economic catalyst other than we had several days of stocks run-up and bonds sell-off," he added.Headlines in Europe, however, continued to attract attention, with the latest news suggesting euro zone banks would be given about six months to strengthen their capital under what could be hefty recapitalization schemes.On balance, though, most investors still believe the European crisis is under control and measures are being taken to avert another credit crunch.While the bounce in Treasuries could carry on, the general trend for most is still lower, with yields seen tracking higher."The general sense and feeling is that there is hopefully positive news out of Europe. So it's still a bearish stance out there on Treasuries," said Suvrat Prakash, interest rate strategist at BNP Paribas in New York."Going into last week, every few days there would be some sort of negative news and it was just one after the other. And now just the absence of that has allowed our nerves to calm down a bit."Volume in the Treasury market was $178.486 billion after 12 p.m. Eastern time (1600 GMT), about 15 percent higher than the 20-day moving average for that time of $155.535 billion, ICAP said.The Treasury market, meanwhile, shrugged off a weekly jobless claims report that many saw as a faintly positive sign for the economy, which would normally spur selling in Treasuries.New U.S. claims for unemployment benefits edged downward last week, according to a government report on Thursday that pointed to a modest improvement in the labor market at the start of the fourth quarter.In late afternoon trading, the benchmark 10-year Treasury note was up 11/32 in price, last yielding 2.18 percent, down 4 basis points from Wednesday.The 30-year bond rose 1-3/32 in price, yielding 3.14 percent, down five basis points from 3.19 percent at Wednesday's close.Market attention has now shifted to nearby resistance at 3.20 percent, analysts said, corresponding to a series of lows in price that formed between Sept. 6-16.RBC Capital Market's chief technical strategist George Davis said a daily close above 3.20 percent would confirm the market's bearish view on U.S. debt, exposing the 38.2 percent Fibonacci retracement of the July-October decline in yields at 3.35.

[anikaecbenn-blog]

TREASURIES-Prices slide in risk-off market; auction weighs

* Global stocks rally, investors seek riskier assetsBy Gertrude Chavez-DreyfussNEW YORK, Oct 12 (Reuters) - U.S. Treasury debt prices fell on Wednesday, lifting benchmark yields to their highest in six weeks, as stocks rallied on optimism about Europe's debt crisis and global economic prospects.The improvement in risk sentiment diminished the appeal of benchmark 10-year Treasury notes at Wednesday's $21 billion auction, attracting weak demand with the yield above pre-auction rates. The bid-to-cover ratio, a gauge of demand which compares total bids with the amount offered, was 2.86, the weakest since November 2010.Last month's auction was awarded at 2.00 percent, the lowest yield ever, and covered 3.03 times, with a high 48.5 percent indirect bid, which is an indication of foreign central bank participation."It just may mean that people are a little more comfortable in the last week with risk than they were in the past week," said David Coard, head of fixed income sales and trading at Williams Capital in New York."There seems to be more comfort in the notion that the economy is not going to experience a double-dip. There's more confidence that the Europeans have the situation there under control and that's making people feel more comfortable with risk assets."Wednesday's sale, which saw indirect bids fall to 35.0 percent from last month's take of 48.5 percent -- followed a poorly-received 1.62 billion-euro auction of German 30-year bonds earlier in the session. The 35 percent indirect bid was the weakest for a 10-year auction in about 1-1/2 years.The 30-year Treasury bond saw the heaviest selling, losing three points in price after the auction, pushing yields to their highest in about three weeks. Yields on 10-year notes, meanwhile, rose to their highest since September 1.Market participants were optimistic European leaders would move to recapitalize struggling euro zone banks and succeed in expanding the European Financial Stability Fund to aid troubled euro zone nations. Slovakia is the last of the 17 euro zone countries that needs to approve the expansion of the EFSF. It may vote as early as Thursday.In late afternoon trading, 10-year yields were up 6 basis points at 2.22 percent. Ten-year notes were last down 17/32 in price.The 30-year bond was down 1-23/32 in price and yielding 3.19 percent, up 8 basis points from 3.01 percent at Tuesday's close. The 30-year yield broke above a key support level at 3.20 percent, the 23.6 percent Fibonacci retracement from this year's high hit in February to the 60-year low set a week ago.Yields, however, eased from their highs after the FOMC minutes came out in line with expectations. The Federal Reserve's minutes of the September 20-21 meeting showed that some officials looked to keep the option open for a third round of quantitative easing.Ten-year yields stalled at 2.27 percent after the release of the Fed minutes, with stocks also leveling out after their rally.While Treasuries have underperformed the last few sessions, some strategists have cautioned against getting overly bearish."Everybody is assuming Greece is a step closer to resolving its issues,' said Jacob Oubina, senior economist at RBC Capital Markets in New York. "I don't know if I agree with that. We haven't seen anything concrete because it's all speculation that something will happen."On Thursday, the Treasury department will auction $13 billion in 30-year bonds, with recent sales showing mixed results. The bid-to-cover ratio has ranged around the 12-month average of about 2.5 percent and in September rose to 2.85 percent.Also, three of the previous five auctions have tailed, with the latest coming through by 2 basis points.

[lorileenokindle-blog]

TREASURIES-Prices tumble after dismal auction

* Slovakia EFSF vote could come Thursday, hopes high* Global stocks rally, investors seek riskier assetsBy Gertrude Chavez-DreyfussNEW YORK, Oct 12 (Reuters) - Treasury prices fell on Wednesday, lifting 30-year bond yields for a sixth straight session, as stocks rallied on optimism about a solution for Europe's debt crisis and after a dismal auction of 10-year notes.A $21 billion sale of 10-year notes drew weak demand, with the yield above pre-auction forecasts. The bid-to-cover ratio, a gauge of demand which compares total bids with the amount offered, was 2.23 percent, below the 12-month average.Last month's auction was awarded at 2.00 percent, the lowest yield ever, and covered 3.03 times with a 48.5 percent indirect bid.Wednesday's weak auction followed a similarly poor 1.62 billion-euro sale of German 30-year bonds earlier in the session."This is not good. It just may mean that people are a little more comfortable in the last week with risk than they were in the past week," said David Coard, head of fixed income sales and trading at Williams Capital in New York."There seems to be more comfort in the notion that the economy is not going to experience a double-dip. There's more confidence that the Europeans have the situation there under control and that's making people feel more comfortable with risk assets."The 30-year Treasury bond saw the heaviest selling, losing three points in price, pushing yields to their highest in about three weeks. Yields on 10-year notes, meanwhile, rose to roughly six-week peaks.Market participants were optimistic European leaders would move to recapitalize struggling euro zone banks and succeed in expanding the European Financial Stability Fund to aid troubled euro zone nations..Slovakia is the last of the 17 euro zone countries that needs to approve the expansion of the EFSF It may vote as early as Thursday.In early afternoon trading, 10-year yields were at 2.26 percent. Ten-year notes were last don 31/32 in price.The 30-year bond was down 2-26/32 in price and yielding 3.24 percent, up from 3.01 percent at Tuesday's close.

[evettezlswestco-blog]

TREASURIES-Prices tumble after dismal auction

* Slovakia EFSF vote could come Thursday, hopes high* Global stocks rally, investors seek riskier assetsBy Gertrude Chavez-DreyfussNEW YORK, Oct 12 (Reuters) - Treasury prices fell on Wednesday, lifting 30-year bond yields for a sixth straight session, as stocks rallied on optimism about a solution for Europe's debt crisis and after a dismal auction of 10-year notes.A $21 billion sale of 10-year notes drew weak demand, with the yield above pre-auction forecasts. The bid-to-cover ratio, a gauge of demand which compares total bids with the amount offered, was 2.23 percent, below the 12-month average.Last month's auction was awarded at 2.00 percent, the lowest yield ever, and covered 3.03 times with a 48.5 percent indirect bid.Wednesday's weak auction followed a similarly poor 1.62 billion-euro sale of German 30-year bonds earlier in the session."This is not good. It just may mean that people are a little more comfortable in the last week with risk than they were in the past week," said David Coard, head of fixed income sales and trading at Williams Capital in New York."There seems to be more comfort in the notion that the economy is not going to experience a double-dip. There's more confidence that the Europeans have the situation there under control and that's making people feel more comfortable with risk assets."The 30-year Treasury bond saw the heaviest selling, losing three points in price, pushing yields to their highest in about three weeks. Yields on 10-year notes, meanwhile, rose to roughly six-week peaks.Market participants were optimistic European leaders would move to recapitalize struggling euro zone banks and succeed in expanding the European Financial Stability Fund to aid troubled euro zone nations..Slovakia is the last of the 17 euro zone countries that needs to approve the expansion of the EFSF It may vote as early as Thursday.In early afternoon trading, 10-year yields were at 2.26 percent. Ten-year notes were last don 31/32 in price.The 30-year bond was down 2-26/32 in price and yielding 3.24 percent, up from 3.01 percent at Tuesday's close.

[louisaarinehart-blog]

TREASURIES-Prices drop after 10-year auction

Last month's auction was awarded at 2.00 percent and covered 3.03 times with a 48.5 percent indirect bid.Benchmark 10-year Treasury notes fell more than a point and were last down 31/32 in price to yield 2.26 percent after the auction.Thirty-year bonds, meanwhile, dropped three points and last changed hands at 2-16/32 in price to yield 3.22 percent.

[louisaarinehart-blog]

TREASURIES-Prices drop after 10-year auction

Last month's auction was awarded at 2.00 percent and covered 3.03 times with a 48.5 percent indirect bid.Benchmark 10-year Treasury notes fell more than a point and were last down 31/32 in price to yield 2.26 percent after the auction.Thirty-year bonds, meanwhile, dropped three points and last changed hands at 2-16/32 in price to yield 3.22 percent.