By Deborah Levine
NEW YORK (MarketWatch) -- The euro turned up against the dollar and Treasury prices resumed their losses on Wednesday, which analysts attributed to reports about German Chancellor Angela Merkel. The European Financial Stability Facility could possibility be used to buy euro-zone sovereign bonds on the secondary markets, she said at a press conference. "Merkel saying that using the bailout fund to buy bonds is a possibility is boosting equities and weighing on risk-free bonds" and supporting the euro, said Richard Gilhooly, U.S. director of interest-rate strategy at TD Securities. The euro EURUSD +0.1728% turned back up to $1.2708, from as low as $1.2637 and versus $1.2698 on Tuesday. Yields on 10-year notes 10_YEAR +3.14% , which move inversely to prices, turned back up 4 basis points to 1.67%, after falling to 1.60% after the Fed decision.
