U.S. 10-Year Yield Rises From 6-Week Low

U.S. 10-Year Yield Rises From 6-Week Low : Treasury 10-year yields rose from a six-week low before the U.S. sells $29 billion of seven-year securities, wrapping up $99 billion of note sales this week.

U.S. debt gained earlier amid speculation the European debt crisis is slowing global growth underpinned demand for the safest investments. German government bonds slid after the nation missed its maximum sales target at a bund auction by 35 percent, sending 10-year yields higher than similar-maturity Treasuries.

“The market is trying their best to price in a concession in front of the 7-year auction, but we remain near fairly low yield levels as fear driven flows from Europe remains the dominant story,” said Sean Murphy, a trader at Societe Generale SA in New York, one of the 21 primary dealers that trade with the Federal Reserve. “Seeing as there is no magical cure for Europe, and rumors continue to circulate any selloff will be capped.”

The U.S. 10-year yield rose three basis points, or 0.03 percentage point, to 1.95 percent at 9:31 a.m. in New York, according to Bloomberg Bond Trader prices. The rate earlier dropped to 1.88 percent, the lowest level since Oct. 6. The 2 percent note maturing in November 2021 fell 9/32, or $2.81 per $1,000 face amount, to 100 14/32.

Note Auction
The U.S. seven-year notes being sold today yielded 1.46 percent in pre-auction trading, compared with 1.791 percent at the previous sale of the securities on Oct. 27. The record low was 1.496 percent on Sept. 29.

The five-year notes auctioned yesterday drew a record low yield of 0.937 percent. Investors at the two-year sale Nov. 21 bid for 4.07 times the amount of debt available, the most ever.

European industrial orders declined the most in almost three years in September, led by Germany and France, a regional report showed today. Orders in the 17-nation euro region slid 6.4 percent from August, when they rose 1.4 percent, the European Union’s statistics office said.

Germany’s bund auction shows the nation is not immune to investors’ increasing aversion to European debt, Frank Schaeffler, a lawmaker from Chancellor Angela Merkel’s coalition said today in Berlin.

Ten-year bund yields rose 20 basis points to 2.12 percent, climbing above Treasury rates. Investors demanded a 17 basis- point premium to hold the German securities instead of their U.S. counterparts, compared with a 12-month average of 15 basis points in Germany’s favor. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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