| Treasuries Decline as Russia May Pare Holdings of U.S. Debt |
| News - Americas |
| Written by Dakin Campbell and Dan Kruger, Bloomberg |
| Wednesday, 10 June 2009 09:20 |
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June 10 (Bloomberg) -- Treasuries fell, pushing 10-year yields to the highest level since November, as the government prepared to sell $19 billion in the securities and Russia said it may switch some of its reserves from U.S. debt.
Thirty-year bond yields touched the most in a year after the first deputy chairman of Russia’s central bank said the nation may buy International Monetary Fund bonds. The Federal Reserve began buying debt maturing in 2019 through 2026. Today’s auction is the second of three sales this week that will raise $65 billion, part of the U.S.’s record borrowing program. “The Fed’s going to buy maybe $3 billion,” said Brian Edmonds, head of interest rates at Cantor Fitzgerald LP in New York, one of 16 primary dealers that trade with the Fed. “We’ve got $19 billion to bid on at 1 o’clock, and then we’ve got bonds following tomorrow. I think we’ll probably be under a lot of pressure.” |