* Heavy bidding at $12 bln 30-year bond reopening
* 2nd highest bid-to-cover since 30Y brought back in 2006
* U.S. jobless claims fell in latest week
(Updates market action, adds fresh quote, changes byline)
By Richard Leong
NEW YORK, Sept 10 U.S. Treasury debt prices
jumped on Thursday, with the 30-year bond gaining two points in
price after robust demand at a $12 billion reopening of a prior
30-year bond issue.
There have been lingering concerns the burgeoning federal
budget gap will hurt the United States' long-term
creditworthiness and foreign appetite for Treasuries. New
borrowing will approach $2 trillion this fiscal year.
But the final of this week's auctions signaled there is
persistent demand for U.S. government debt.
"This seals in the can that there is a lot of demand for
Treasuries no matter what the maturity is," said Rudy Narvas,
senior strategist at 4Cast Ltd in New York.
Data showed the bidding was the second highest since the
30-year bond, the longest U.S. government maturity, was
reintroduced in February 2006.
Benchmark 30-year Treasury bonds US30YT=RR last traded up
2-4/32 at 104-30/32. Their yield, which moves inversely to
price, was 4.21 percent, down from 4.33 percent late on
The reopened 30-year bonds cleared at a high yield of 4.238
percent, according to Treasury data. For more see
In "when-issued" trading, traders had expected the reopened
30-year issue to yield 4.28 percent.
(Editing by Andrea Ricci)