Long-Dated Treasurys Rise, Boosted by Strong 30-Year Auction
Author: Min Zeng</br></br>NEW YORK--Longer-dated Treasurys rose as the bond market showed some tentative signs of recovery after the biggest two-day selloff in two years.</br></br>The key boost came from a strong 30-year bond auction. Higher yields also brought in fresh buyers, who snapped up cheapened bonds, betting that the recent selloff may have run its course.</br></br>The gains came as a relief for many market participants after the violent rout in the previous two sessions. The benchmark 10-year note's yield, which moves inversely to its price, jumped on Wednesday to the highest level since June as President Barack Obama's tax-cut deal with Republicans in Congress boosted bets on higher economic growth and higher budget deficits, a double whammy for the Treasury market.</br></br>"The auction went really well, and I think the bond market is stabilizing," said Chris Sullivan, who oversees $1.65 billion as chief investment officer in New York at the United Nations Federal Credit Union. "Bond yields have more room to fall back."