Treasuries unwanted ahead of auction

Date: Wednesday 10 Mar 2010

US treasuries were unwanted as investors continued to favour equities.

There was little appetite for government debt ahead of an auction of $21bn worth of 10-year notes.

The yield on a 10-year note rose by four basis points to 3.74%.

In the UK equity markets continued to edge higher, but manufacturing data reminded investors that economic conditions remain uncertain.

Britain’s manufacturers had it tougher than expected in January as the awful weather contributed to the first fall in output for five months. Production fell 0.9% at the start of 2009, according to the Office for National Statistics, confounding economists who’d predicted 0.2% growth.

Gilts were little changed, with the yield on a 10-year gilt rising by two basis points to 4.06%.

In mainland Europe German exports unexpectedly fell in January following four months of gains, official figures showed on Wednesday. Exports dropped 6.3% to €67.9bn in January compared with December 2009, while imports rose by 6% to €59.2bn, according to the Federal Statistical Office.

Germany’s 10-year bund yield climbed by two basis points to 3.15%.

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