US Treasury auctions to test investor appetite again next week

Thu Jun 4, 2009 10:38pm BST
[-] Text [+]

*Treasury to sell $65 bln in 3-, 10- 30-yr securities

*Sale part of record $2 trillion issuance in 2009

*Sales take place as demand for safe-haven assets wanes

*Higher rates could dry out 'green shoots'

By Ellen Freilich

NEW YORK, June 4 (Reuters) - The U.S. government's need to borrow more than $2 trillion this year to help fund its projected $1.8 trillion deficit and revive ecomomic growth will again test investors' appetite for U.S. Treasury debt next week.

A total of $65 bln in 3-year, 10-year, and 30-year debt will be sold next week, the U.S. Treasury said on Thursday.

The sales will consist of $35 billion in three-year notes, $19 billion in 10-year notes, and $11 billion in 30-year bonds.

While next week's offering is smaller than last week's record $101 billion sale of two-, five- and seven-year notes, yields on all but the shortest Treasury maturities have recently risen to their highest levels in six months at least party because of the extra supply.  Continued...

 
by Name by Symbol