Summary Box: Advancing Treasury prices drive rates lower as demand for gov’t debt weakens
By APThursday, February 11, 2010
Summary Box: Interest rates fall on poor auction
WHAT DROVE RATES HIGHER? Falling Treasury prices sent interest rates higher for a third day after demand was poor at a Treasury Department auction of 30-year notes.
HOW DID OTHER AUCTIONS THIS WEEK FARE? Not well. Demand was low at auctions of three-year and 10-year notes. If auctions remains weak, it will become more expensive for the government to finance its borrowing.
WHY ELSE DID PRICES SLIDE? Fears that Greece would default on its debt eased after European Union countries said they would help the country, which is struggling with massive deficits.
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