Treasuries Gain on Safety Demand Before First Auctions
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Treasuries rose on demand for the safest securities before three sales of notes and bonds totaling $66 billion this week, starting with a $32 billion three-year debt auction today.
Yields on the benchmark 10-year bond fell even after the French government called speculation of a downgrade to the nation’s credit rating “unfounded.” The three-year notes scheduled for sale today yielded 0.39 percent in pre-auction trading, compared with a record low 0.327 percent at the previous auction on Dec. 11.