When US prepared to sell $16 bllion of the securities and when European leaders said that they reached an accord on Greece’s debt crisis, treasuries bond yields rose to the highest level.
Guy Lebas, hief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia said: “Treasuries have been whipsawed by the continuing news out of the European Union, which seems to now be pointing toward a resolution, which is weighing on the market. It’s not the best day to have to have a 30-year auction given the uncertainty out there.”
Bonds in Germany rose as European Union leaders demanded the nation’s government should get its budget deficit under control, while stopping short of offering specific measures to help manage the country’s debt. Christoph Rieger, co-head of fixed-income strategy in Frankfurt at Commerzbank AG said: “The news is not very compelling considering how far the market had moved in anticipation of the announcement. Markets will remain choppy until we get a clearer picture.”