July 24 (Bloomberg) -- Treasury 30-year bond yields fell to a record low as Spanish borrowing costs rose amid concern Europe’s debt crisis is spreading to the region’s strongest nations.
U.S. government debt rose after a report from Reuters cited European Union officials saying Greece was seen missing targets for reducing debt. Treasury yields rose earlier before the government auctions $35 billion in two-year notes in the first of three auctions this week totaling $99 billion. The U.S. economy probably expanded in the second quarter at the slowest pace in a year, a report this week may show.
“The lack of good news at this point is bad news,” said Dan Greenhaus, chief global strategist at the broker-dealer BTIG LLC in New York. “As long as Europe continues to be a concern and U.S. economic numbers come down, the Treasury auctions should be well bid.”
Thirty-year yields fell two basis points, or 0.02 percentage point, to 2.48 percent as of 12:44 p.m. in New York, according to Bloomberg Bond Trader data. It touched a record 2.4738 percent. Ten-year Treasury yields declined two basis points to 1.41 percent after touching a record low 1.3960 percent yesterday.
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