February 23, 2017 / 9:39 PM / 5 months ago

UPDATE 1-Funds buy most U.S. 30-year bonds ever at auction -Treasury data

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    * Funds purchase fewer 10-year notes at auction vs January
    * Foreigners buy most 10-year Treasuries since June

 (New throughout, adds details and background)
    Feb 23 (Reuters) - Investment funds bought their largest
ever sum of U.S. 30-year Treasury bonds at an auction,
suggesting renewed appetite for longer-dated debt following a
bond market rout in the wake of Donald Trump's surprise U.S.
presidential win last November. 
    Fund managers bought $9.238 billion of the $15 billion in
30-year or "long" bonds offered on Feb. 9. This was the highest
award to fund managers at a 30-year auction since Treasury
auction data were available going back to January 2000.
    In January, investment funds purchased $7.226 billion of
long bonds at auction.
    The latest 30-year bond sale was part of the government's
quarterly refunding which also consisted of a $24 billion
auction of three-year notes and $23 billion auction of 10-year
debt.
    Fund managers bought $9.718 billion of the 10-year note
supply, compared with January's $10.255 billion which was the
most they purchased since last September.
    At the latest three-year auction, they purchased $10.678
billion, up from $9.310 billion in January.
    Meanwhile, overseas investors, another major group of U.S.
government debt holders, bought $5.368 billion at the latest
10-year Treasuries auction. This was their highest amount since
June 2016, Treasury data showed.
    However, foreigners purchased $856 million at the 30-year
bond auction, their lowest since last September. It also marked
four straight months of decline in their purchases of long bonds
at auction.

 (Reporting by Richard Leong)
  

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