TREASURIES-Yields rise as German data saps safety appeal

Fri Jan 25, 2013 8:49am EST

Related Topics

* Bunds fall after rise in German sentiment in January
    * US fiscal uncertainty gives Treasuries longer-term support


    By Chris Reese
    NEW YORK, Jan 25 (Reuters) - U.S. Treasury debt yields rose
on Friday, with 30-year bonds trading a point lower in price
after better-than-expected euro zone data spurred selling of
safe-haven U.S. government debt.
    Low-risk bonds in the United States and Europe weakened
after a German business sentiment survey from the Ifo think tank
improved for the third consecutive month in January. The survey
added to a more positive economic picture painted by U.S.
employment data on Thursday. 
    "Strong Ifo data pushed the Bunds lower and Treasuries
followed," said Tom di Galoma, managing director at Navigate
Advisors LLC in Stamford, Connecticut.
    Benchmark 10-year notes were trading 17/32 lower
in price to yield 1.91 percent, up from 1.86 percent late
Thursday, while 30-year bonds were down a point in
price to yield 3.10 percent from 3.05 percent.
    Over the longer-term, U.S. bonds remain supported by an
uncertain fiscal outlook, with mixed forecasts for the economy
amid worries over the United State's postponed debt limit and
pending government spending cuts.
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