Long Bonds Rally After Strong Auction

BY MIN ZENG

NEW YORK—The 30-year Treasurys rallied Thursday afternoon, erasing early losses, after strong demand on a $13 billion auction of the same maturity successfully wrapped up this week's $74 billion new government notes and bonds sales.

Other maturities of the Treasury market were down in prices but improved from the worst levels of the day. The 30-year bond garnered the bulk of buying as the auction result exceeded market expectations in a sector that usually sees smaller buying interest given its long maturity.

Bidding was also resilient in the auctions of $40 billion in three-year notes and $21 billion in 10-year

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