Treasuries Fail to Rebound as Germany, France Seek New EU Rules
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Treasuries failed to rebound from a loss yesterday after Germany and France said they want new European Union rules on borrowing limits and penalties for deficit violators to curb the region’s debt crisis.
Investors demanded 15 basis points of extra yield to buy 10-year German bonds instead of same-maturity U.S. notes, less than half of what they required a week ago, as demand for the relative safety of American debt eased. Treasuries have fluctuated this year in response to developments in Europe, with the flight to quality sending U.S. 10-year rates to a record low of 1.67 percent in September.