Yields drop on most US Treasury bonds

The prices of US Treasury bonds rose on Thursday as there were indications that troubles in the US subprime sector are beginning to affect global markets and investors looked for safe places to put their money.

The European Central Bank put almost €95 billion into Eurozone money markets during the day to try to calm investors.

Two-year Treasury bonds were yielding 4.5 percent, down from Wednesday’s late quote of 4.67 percent, while ten-year issues yielded 4.79 percent.

An auction of thirty-year paper worth $9 billion did not attract much interest, with indirect bidders only accounting for around 12 percent of the sale, as opposed to 42 percent last time.

Before the auction, the thirty-year bonds were yielding 5.01 percent, down from Wednesday’s late quote of 5.05 percent, but after the auction yields had risen again to the 5.05 percent level.

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