Treasuries Erase Losses as Boehner Says No Deficit Gains
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Treasuries erased losses after Republican House Speaker John Boehner said “no substantive progress” has been made in talks to avert the so-called fiscal cliff, boosting demand for haven assets.
Government debt fell earlier today on speculation lawmakers were making progress in budget talks to avoid automatic spending cuts and tax increases. The Treasury will sell $29 billion of seven-year notes today after demand rose at an auction of five-year debt yesterday. The Federal Reserve is acquiring as much as $17.2 billion in six Treasury purchases this week, including a purchase of $4.74 billion today.