LONDON (ShareCast) - US Treasury prices edged higher after the Federal Reserve soaked up $6.45bn of government debt dated 2012.
The yield on the 10-year note eased 1 basis point to 3.70%.
In the UK, the sale of 25-year gilts went with
a bang, with £7bn of stock being sold, more than was envisaged. Unusually, the Bank of England (BoE) had enlisted the aid of banks to manage the sale rather than using the traditional auction method. The BoE last used banks as agents in this manner four years ago.
The 4.5% gilts maturing in 2034 attracted more than £15bn worth of bids, with the successful bids satisfied at an effective coupon of 4.646%.
The yield on 30-year gilts dipped 3 basis points to 4.53%. Meanwhile, the yield on the benchmark 10-year gilt rose two ticks to 3.90%.
On the European mainland bond prices were little changed.
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