NEW YORK Dec 4 Prices on longer-dated U.S.
government debt added to earlier gains on Tuesday, hitting
session highs, after the Federal Reserve's $1.84 billion bond
purchase, its latest move for its "Operation Twist."
Primary dealers submitted a smaller-than-usual $4.047
billion in bonds for the U.S. central bank to buy. The Fed's
subsequent $1.837 billion purchase of Treasuries due in Feb.
2036 to Nov. 2042 caused dealers to scramble for longer-dated
issues on the open market so they can resell them to the Fed, a
head Treasuries trader said.
The 30-year bond last traded up 11/32 in price
with a yield of 2.779 percent, down 2 basis points from late on
Monday. It was up as much as 14/32 in price with a 2.775 percent