Treasury debt prices slid as the stock market staged a comeback after Friday's sell-off, on positive developments in the financial sector that cut into demand for low-risk investments.
The benchmark 10-year government note's price rose 1 point Friday, extending earlier gains, as the stock market came off the session highs it had reached on stronger oil prices and hopes of more aggressive rate cuts from the Federal Reserve.
Treasury debt prices mostly fell Wednesday as investors interpreted testimony by Federal Reserve Chairman Ben Bernanke as hinting that the central bank may be thinking of ending its round of interest rate cuts.
Lehman's CFO told CNBC that the investment bank was essentially forced to raise $4 billion because of growing rumors of liquidity problems similiar to Bear Stearns.
Lehman Bros saw strong demand for its share offering, while a big writedown by UBS signaled the worst might be over.
Lehman Brothers Holdings sold $4 billion of convertible preferred securities on Tuesday, in an effort to stave off questions about the fourth-largest investment bank's stability.
Treasury debt prices plunged Tuesday as plans by financial companies to raise capital were taken as a possible sign the worst of the credit crisis might be over, sapping any safe-haven bid for bonds.
Lehman Brothers became the latest bank to take steps to shore up its funding after markets closed Monday, announcing that it will issue $3 billion of convertible preferred shares.
Citigroup was dethroned as the world's largest underwriter of stocks and bonds for the first time in more than six years, as the global credit crunch hit Wall Street hard.
Investors, worried about the faltering economy and turbulent stock market, have flocked to US Treasury bonds. But the stampede has pushed Treasury yields so low that their investment value is practically non-existent.
Treasury debt prices rose, bolstered by safe-haven buying from investors' persistent worries about the global banking system.
Longer-dated Treasury debt prices rose Friday, aided by favorable data on February inflation.
South Korea's National Pension Service, the world's fifth-biggest pension fund, said on Thursday it was shying away from U.S. Treasurys because of falling yields and the weakening dollar.
Treasury debt prices traded steady at lower levels following relatively decent demand in an auction of $18 billion of 5-year notes.
Treasury debt prices extended gains Wednesday on a well-bid Treasury two-year note auction.
Treasury debt prices revived as news of another slide in home prices and in consumer confidence reminded buyers of the uncertain outlook for the US economy.
Treasury debt prices fell on Monday as a stock market rally and signs of recovery in the housing and credit markets weakened the bid for safe-haven government debt.
Treasury debt prices were little changed Thursday absent a strong directional clue from U.S. stock futures, but supported by a persistent safe haven bid on concerns about the banking system and weaker than expected jobless claims data.
Treasury debt prices were little changed Thursday absent a strong directional clue from US stock futures, but supported by a persistent safe haven bid on concerns about the banking system and weaker than expected jobless claims data.
Treasury debt prices rose on persistent worries about a US recession and the banking system and as stock market euphoria about a deep Federal Reserve rate cut the day before began to fade.