TREASURIES-Bonds fall as investors make room for supply

* U.S. government debt loses ground for 3rd straight day

* Long-dated yields touch highest levels in about a month

By Richard Leong

NEW YORK, Sept 10 (BestGrowthStock) – U.S. Treasury prices fell on
Friday, as investors reduced their holdings of safe haven
government bonds after a record supply of higher-yielding
corporate bonds this week.

Thursday’s poor auction of 30-year Treasury bonds, part of
this week’s $67 billion in coupon-bearing government debt, also
soured short-term sentiment in the Treasuries market, analysts

The market had attempted to rebound from back-to-back days
of losses, but the overseas bids from money managers and
central banks failed to spur further buying, analysts said.

Longer-dated yields touched their highest levels in about a
month. The yield on 10-year notes (US10YT=RR: ) and 30-year bonds
(US30YT=RR: ) found technical support at the 2.80 percent and
3.90 percent area, respectively.

“There’s still a lot of supply to digest. The 30-year
auction was pretty horrible yesterday and the market is still
under water,” said Kim Rupert, managing director of global
fixed income analysis at Action Economics LLC in San

“It’s been a huge week for corporate issuance so that sort
of took its toll as well. I think the market’s just suffering
from some indigestion,” she said.

Companies have issued $34.4 billion in investment-grade
bonds so far this week, surpassing the previous record $31.85
billion in the week ended Aug. 6, according to IFR, a Thomson
Reuters service.

(Additional reporting by Burton Frierson, Editing by Chizu

TREASURIES-Bonds fall as investors make room for supply