NEW YORK (Dow Jones) – The prices of U.S. Treasury bonds on Wednesday in the course of the late New York trade tends easier. As a load factor of the "disappointing" runaway auction of new notes was mentioned.
Ten-year bonds with a coupon of 3.375% decreased by 14/32 to 99-17/32, and yielded 3.43%. Compounded with 4.375% of the Long Bond fell 22/32 to 99-9/32, its yield rose to 4.42%.
Meanwhile, benefiting U.S. bonds, according to traders of the events in Europe and the Middle East. After the credit reductions for Greece and of some state-owned companies in Dubai and is now threatening such a move the United Arab Emirates. The rating agency Moody’s reviewed the credit quality of some of the state affiliated companies on a possible variation in the United Arab Emirates and Abu Dhabi. Market participants also referred to the lowered credit ratings outlook for Spain by Standard & Poor’s.
But did the more moderate runaway auction of ten-year securities worth 21 billion USD the prices then sent on descent, it said in the trade. However, some operators relativized the losses. These are also due to the thin turnovers before the year-end. "The auctions have so far been very well received. Then one should not overestimate a slightly runaway," said a dealer in New York City’s pension.