U.S. Treasuries Decline as ECB Loans More Than Analyst Estimates in LTRO

U.S. Treasuries fell as the European Central Bank allotted 529.5 billion euros ($713 billion) in its second tranche of three-year loans to euro-area banks, exceeding analyst estimates.

European banks were forecast to take 470 billion euros in three-year loans from the ECB, according to the median estimate of 28 economists in a Bloomberg News survey. The amount compares with 489 billion euros borrowed in the first three-year longer- term refinancing operation in December.

Ten-year yields rose two basis points, or 0.02 percentage point, to 1.96 percent at 10:30 a.m. London time, according to Bloomberg Bond Trader prices. The 2 percent security due February 2022 fell 6/32, or $1.88 per $1,000 face amount, to 100 11/32.

Benchmark 10-year yields rose four basis points on Dec. 21, when the ECB awarded the previous round of three-year cash.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net.

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net.

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