US bond yields up on data, debt ceiling uncertainties
March 15, 2006
In the US on Wednesday, Treasury notes were affected by a report that showed foreign demand weakening, with purchases by foreign investors at a net $4.4 billion in January, substantially lower than the $18.3 billion in Treasury bonds purchased by foreign investors in December. The December number had been the lowest level of foreign participation in six months. Additionally, The New York Federal Reserve’s Empire State index was up to 31.2 in March, after a previous reading of 21, a far larger jump than had been expected.
Meanwhile, the Treasury Department has asked Congress to raise the debt limit, having already reached the current limit. If Congress does not act by Thursday evening, new sales of two-year and five-year notes, expected to be announced next week, could be put off.
At late morning in New York, yields on two-year Treasury bonds were up 2.1 basis points to 4.67 percent, while ten-year bond yields were up 4.7 basis points to a yield of 4.745 percent.