Reply #32: US Treasuries aided by indirect bidding at auction

[UpInArms]

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=5496992

NEW YORK, June 23 (Reuters) - U.S. Treasury debt prices edged up on Wednesday amid easing anxiety the Federal Reserve will move aggressively to boost interest rates and after good indirect bidding interest in a two-year note auction.

On the surface, the $25 billion sale appeared roughly in line with expectations as the new notes went for a yield of 2.785 percent. They drew bids for 2.17 times the paper on offer, just below the level seen at the last auction in May.

However, a breakdown of the results showed indirect bidders, which include all customers of primary dealers as well as foreign central banks, picked up nearly 60 percent of the offering, well above last month's 40 percent.

This helped allay concern that overseas central banks were losing their appetite for U.S. government debt, especially with the Federal Reserve on the verge of raising interest rates.

...more...