Reply #13: Bargain hunters lift Treasuries, refunding awaited [View All]

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-03T125445Z_01_N03309620_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Aug 3 (Reuters) - U.S. Treasury debt prices rose on Wednesday as buyers stepped in after three days of declines which were prompted by a rash of strong economic data that all pointed to further U.S. official interest rate hikes.

"I don't call it bargain hunting. This stuff is not cheap. I call it bottom picking," said one trader, who said he expected prices to chop around in a fairly tight range due to position-squaring ahead of Friday's non-farm payrolls data.

More immediately, the market is looking ahead to the Treasury Department's refunding announcement at 9 a.m. (1300 GMT). New debt issuance was expected to be $44 billion, down from the $51 billion seen last quarter, as increased tax receipts reduce the need for government borrowing.

Benchmark 10-year notes were 5/32 higher to yield 4.32 percent, after ending the day Tuesday at 4.34 percent, 1 basis point under a technical barrier at 4.35 percent.

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