Japanese PM Abe says North Korean missile launch a grave threat to Japan
LONDON, April 29 North Korea's decision to test-fire a ballistic missile represents a grave threat to Japan, Prime Minister Shinzo Abe said in London on Saturday.
* U.S. 2-year yield rises to six-year high * U.S. 30-year yields fall after strong auction * Yield curve flattens, reversing trend since U.S. election (Updates to afternoon trading, new throughout) By Dion Rabouin NEW YORK, Dec 13 Shorter-dated U.S. Treasury yields rose to their highest levels of the year on Tuesday, with 2-year notes touching over 6-year highs, ahead of an expected increase in U.S. overnight interest rates at Wednesday's Federal Open Market Committee meeting. Investors overwhelmingly expected the FOMC to announce a rate hike on Wednesday, the first since rates were raised to 0.25-0.50 percent at its December 2015 meeting. That prompted moderate selling, pushing yields of shorter-dated maturities to new highs. The yield curve flattened after a strong 30-year Treasury bond auction sent prices on the long bond into positive territory and sank yields. Bond yields move inversely to their prices. "The main theme has been a flatter curve with the front end trading very heavy to the highest yields in a few years and the long end just trying to hold in above the auction stop," said Justin Lederer, Treasury analyst at Cantor Fitzgerald in New York. The 30-year bond auction was well bid as yield-hungry investors snatched up $12 billion of supply, which sold at the highest maturity since September 2014. "A month ago the yield on the 30-year was 2.90 percent and today we were up at 3.15 percent," said Lou Brien, market strategist at DRW Trading in Chicago. "That's 25 basis points more to sweeten the pot for the same paper that was auctioned a month ago." The rebound in appetite for 30-year Treasuries came a day after lackluster demand for $24 billion of 3-year notes and $20 billion of 10-year debt. Also on Monday benchmark U.S. 10-year yields touched more than two-year highs above 2.50 percent, while 30-year bond yields climbed to around 17-month peaks. Since Donald Trump's victory in the U.S. presidential election on Nov. 8, longer-dated bonds including U.S. 30-year Treasuries have fallen out of favor on bets of faster inflation and a surge in federal spending and borrowing under a Trump administration. Tuesday's price action after the auction reversed the overall trend since the election, which had been longer-dated Treasuries rising more than shorter-dated yields. Benchmark U.S. 10-year note prices fell 1/32, while the yield rose to 2.482 percent. On Monday, the yield hit 2.528 percent, its highest level since Sept. 29, 2014, according to Reuters data. U.S. 30-year bonds rose 15/32. The yield was 3.138 percent, compared with 3.162 percent on Monday. U.S. two-year notes fell 2/32 in price to yield 1.174 percent. (Reporting by Dion Rabouin; Editing by Andrew Hay)
April 28 A top U.S. financial regulator said on Friday that it closed the banking unit of First NBC Bank Holding Co, three days after the lender reported accounting issues dating back to at least 2015.