Treasury 30-year bonds fell before the U.S. auctions $13 billion of the debt. Ten-year note yields reversed a decline. Reports today will show the U.S. trade deficit widened in and the number of Americans filing first-time claims for unemployment insurance payments increased last week, according to Bloomberg surveys of economists. Demand rose at a 10-year note sale yesterday and climbed to a record at a three-year sale on Oct. 9, amid investor appetite for their relative safety. The 30-year bond yield rose one basis point, or 0.01 percentage point, to 2.89 percent at 10:42 a.m. London time. The 2.75 percent security due August 2042 fell 9/32, or $2.81 per $1,00 dollar face amount, to 97 1/8. Ten-year note yields added two basis points to 1.69 percent after dropping to 1.67 percent, the least since Oct. 5. Ten-year rates fell seven basis points, or 0.07 percentage point, over the past two days. They slipped to a record low 1.38 percent on July 25. Spain’s credit rating was lowered two levels to BBB-, one above junk, by Standard & Poor’s, the New York-based S&P said in a statement yesterday, citing mounting economic and political risks as the government considers a second bailout. The cut was unexpected and is negative for Spain, said Ignacio Fernandez- Palomero Morales, the deputy head of the nation’s Treasury. The 30-year bond scheduled for sale today yielded 2.90 percent in pre-auction trading, compared with 2.896 percent at the last offering, on Sept. 13. The record auction low of 2.58 percent was set in July. Investors bid for 2.68 times the amount of the securities offered last month. To contact the reporters on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net; Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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