NEW YORK, May 29 (Reuters) - U.S. government bond prices were steady at lower levels on Tuesday after a mixed reception to an $18 billion auction of new two-year notes.
The auction fetched a bid-to-cover ratio, a gauge of overall demand, of 2.53, below the 2.93 at April's auction but above the 2006 average of 2.41.
The indirect bids which encompass demand from foreign central banks accounted for roughly 21.7 percent of overall bids versus 42.2 percent at last month's auction and below their 2006 average of 32.8 percent.
Two-year Treasury notes were down 2/32 in price to yield 4.91 percent against 4.90 percent shortly before the auction results and 4.87 percent late Friday.
Benchmark 10-year Treasury debt was down 5/32 in price for a 4.89 yield, steady from the level right before the announcement of the auction results and 4.87 percent late Friday.
The U.S. bond market was closed on Monday for the U.S. Memorial Day holiday.
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