Thursday, January 11, 2007

Prices fall on US Treasuries

TREASURIES-Bonds hold at lower levels after TIPS auction

NEW YORK, Jan 11 (Reuters) - U.S. government bond prices fell on Thursday, holding at lower levels after data showed below-average demand for $9 billion of new 10-year Treasury Inflation-Protected Securities (TIPS).

The auction's bid-to-cover ratio, a gauge of overall demand, was 1.67 versus an average of 1.81 at the last five auctions of new 10-year TIPS, based on data from Wrightson ICAP.

Indirect bids, a proxy for foreign demand, totaled $3.72 billion, below the average of $4.6 billion for new TIPS supply, according to Wrightson ICAP.


No comments: