* Treasury yields fall as German bond yields fall to record lows * Ukraine tensions add safety bid * Expectations ECB will announce new stimulus drives purchases * Thirty-year bond yields lowest since May 2013 * Treasury sells $29 bln 7-year notes to solid demand By Karen Brettell NEW YORK, Aug 28 U.S. Treasuries rallied on Thursday and 30-year bond yields fell to their lowest in over a year as concerns over tensions in Ukraine sparked safety buying, and as European government yields continued to hit record lows. Ukraine accused Russia on Thursday of bringing troops into the southeast of the country in support of pro-Moscow separatist rebels. Expectations that the European Central Bank is likely to announce new stimulus have also driven a strong rally in German government debt, which in turn has led Treasury yields lower. "It's all about Europe," said Ira Jersey, an interest rate strategist at Credit Suisse in New York. "At the moment Treasuries seem to be at the whim of bunds." Benchmark 10-year Treasuries were last up 5/32 in price to yield 2.34 percent, down from 2.36 percent late on Wednesday. Thirty-year bonds gained 17/32 in price to yield 3.07 percent, the lowest since May 2013 and down from 3.11 percent late on Wednesday. German 10-year government bond yields hit record lows of 0.87 percent. Geopolitical concerns and ECB expectations are likely to maintain a bid for Treasuries and remain the market's focus, even as next Friday's highly anticipated employment report for August comes into view. "It'll be important but not as important as what is going on geopolitically and what the ECB does," said Mary Ann Hurley, vice president of trading at D.A. Davidson Co. in Seattle. Treasuries yields rose slightly and very briefly after data showed that the U.S. economy rebounded more strongly than initially thought in the second quarter. Gross domestic product expanded at a 4.2 percent annual rate instead of the previously reported 4.0 percent pace, the Commerce Department said, reflecting upward revisions to business spending and exports. Large demand from investors rebalancing portfolios this week has added to the bond rally and helped absorb this week's new supply, traders said. The Treasury sold $29 billion in seven-year notes on Thursday to solid demand, the final sale in $93 billion of new coupon-bearing supply. (Editing by Chizu Nomiyama)
Western Digital says resubmitted bid with KKR for Toshiba's chip unit
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