US Treasuries struggle despite reasonable auction
NEW YORK, March 9 (Reuters) - U.S. Treasuries tried to trim early heavy losses on Wednesday after an auction of new U.S. government debt drew reasonable demand, but a bearish market still seemed inclined to sell into rallies.
The sale of $15 billion in five-year Treasury notes went at a high yield of 4.08 percent, well below dealer expectations. It drew bids for 2.58 times the amount on offer, up on February's 2.53 level and the long-term 2.27 average.
Indirect bidders, including customers of primary dealers and foreign central banks, picked up $6.35 billion, or 42 percent, of the whole issue. That was only just down from February's 45 percent share and a relief to traders given worries that foreign demand would fall sharply. Primary dealers took $7.48 billion of the sale.
The current five-year note <US5YT=RR> was still down 4/32 in price, lifting yields to 4.09 percent from 4.05 percent. The benchmark 10-year note <US10YT=RR> was 15/32 lower in price to yield 4.45 percent, having been hit by technical selling early in the session.
