TREASURIES-Prices edge up as Draghi comments add bond bid
* Prices edge up after ECB comments increase rate speculation * Volumes seen light as U.S. East Coast prepares for snowstorm * Treasury to sell $72 bln in new 3, 10 and 30-year bonds By Karen Brettell NEW YORK, Feb 8 (Reuters) - U.S. Treasuries prices rose slightly on Friday, consolidating a dramatic rally from Thursday after comments from European Central Bank President Mario Draghi raised speculation that the bank would cut interest rates to stem the region's strengthening currency. Draghi said on Thursday that he was monitoring the effect of the strengthening euro, raising expectations that the ECB may cut rates from a record low 0.75 percent. The comments boosted the U.S. dollar against the euro, and lifted safe haven assets including Treasuries and German bunds. Benchmark 10-year Treasuries yields fell as low as 1.93 percent on Thursday before seeing a late day backup to 1.97 percent. The notes have now come back with the yield at around 1.95 percent on Friday. "The market went out very heavy last night and has bounced back here somewhat," said Charles Comiskey, head of Treasuries trading at Bank of Nova Scotia in New York. Treasuries are now holding near the bottom end of their recent range after a selloff in late January and early February pushed the 10-year notes to more than eight month highs of 2.06 percent on February 4. Comiskey sees the notes' current yield range as being between around 1.90 percent and 2.03 percent. Trading was expected to be light on Friday as residents on the U.S. east coast prepared for a large snowstorm in the region. The next focus for the market will be the Treasury's sale of $72 billion in new debt next week. This will include $32 billion in three-year notes on Tuesday, $24 billion in 10-year notes on Wednesday and $16 billion in 30-year bonds on Thursday. The Federal Reserve will buy between $1 billion and $1.5 billion in Treasury Inflation-Protected Securities (TIPS) due between 2020 and 2042 on Friday as part of its ongoing bond purchase program.
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