Funds buy record amounts of longer-dated Treasuries at auctions

NEW YORK (Reuters) – Investment funds purchased record amounts of longer-dated U.S. government debt during the quarterly refunding conducted in early August, according to Treasury Department data available going back to 2000.

Investment managers bought $12.444 billion at a $29 billion 10-year note auction, compared with the $9.961 billion they purchased the previous month, the Treasury data released on Tuesday showed.

They bought $9.241 billion of the $15 billion in 30-year bonds offered earlier this month, which was far more than the $7.068 billion they bought in July.

Foreign investors, another major group of holders of U.S. government debt, bought $1.783 billion of the latest 10-year supply, the least amount they bought at an auction since June 2009 and well below the $3.405 billion they purchased the previous month, according to the Treasury’s auction allotment data.

Foreign investors bought $1.147 billion of 30-year bonds versus $0.723 billion the previous month.

The Treasury also sold some of $30 billion of 10-year notes earlier this month to banks, pension funds and Wall Street bond dealers.

At other auctions held the same week as the 10-year auction, large investment managers bought $11.349 billion of 3-year notes, compared with the $8.502 billion they purchased the previous month.

Overseas investors bought $6.108 billion of the latest 3-year supply, compared with $6.070 billion they purchased the previous month.

The Treasury offered $31 billion in 3-year notes and $20 billion in 30-year bonds.

Reporting by Richard Leong; Editing by Leslie Adler


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