BLBG:Treasuries Little Changed Before U.S. Sells $72 Billion In Debt
Treasuries were little changed as the U.S. prepares to auction $32 billion in three-year debt tomorrow, the first of three sales of notes and bonds this week totaling $72 billion.
Treasuries rose earlier after Italian Prime Minister Mario Monti warned of a potential breakup of Europe without greater urgency in efforts to lower government borrowing costs. The U.S. will sell $24 billion of 10-year notes on Aug. 8 and $16 billion of 30-year bonds the next day.
“We’ll probably look for supply to create a concession,” said Ian Lyngen, a government-bond strategist at CRT Capital Group LLC in Stamford, Connecticut. “On a relatively slow day, the back and forth of competing European headlines may once again drive Treasury prices.”
The benchmark 10-year yield was little changed at 1.56 percent at 8:06 a.m. in New York, according to Bloomberg Bond Trader prices. The 1.75 percent note maturing in May 2022 rose 1/32, or 31 cents per $1,000 face amount, to 101 23/32.
Monti, in an interview with Germany’s Der Spiegel magazine published yesterday, said that disagreements within the 17- nation euro area are detracting from the policy response to the debt crisis and undermining the future of the European Union.
To contact the reporters on this story: Susanne Walker in New York at swalker33@bloomberg.net; Neal Armstrong in London at narmstrong8@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
