Treasuries fell & One report showed that consumer prospects improved in November for the first time in three months.

Treasuries fell, with yields of two years into account the maximum increase in six months, European leaders will reinforce speculation the most indebted nations in the euro area, reducing the demand for security.

Irish and Portuguese bonds joined as Treasury bonds rose more than 10 years two months. One report showed that consumer prospects improved in November for the first time in three months. The Federal Reserve bought $ 7,229,000,000 of Treasury as the central bank embarked on a second round of unconventional monetary easing to reduce unemployment and prevent deflation.

"The European situation is less worrying because there have been reports of a possible rescue of Ireland, which has allowed for greater performance," said Prakash Suvrat, interest rate strategist in New York unit of BNP Paribas SA BNP Paribas Securities, a of the 18 primary dealers required to bid at Treasury auctions.

The yield on two-year note rose eight basis points, or 0.08 percentage point to 0.51 percent at 5:07 pm in New York, according to BGCantor Market Data. The price of 0.375 percent security maturing in October 2012 fell 5 / 32, or $ 1.56 per $ 1,000 face amount, to 99 24/32. The yield is up 14 basis points this week, the most since the week ended February 27, 2009.

Yields on benchmark 10-year note rose 14 basis points to 2.78 percent and are up 26 basis points during the week, the most since the week ended December 25, 2009. Bond yields rose Thirty years four basis points to 4.28 percent.

Yield spread

The difference in yield between Treasuries and 10 years and 30 - year bond hovered near record levels, even when it shrank to 150.7 points, after touching a record high of 160.2 percentage points on 10 November. The spread has averaged 52.8 points since the beginning of 2000.

"The spread has widened with the Fed to buy more on the 10 years that the 30-year bond, and increased inflation expectations," said Prakash. "Whether it is increasing is a question in the mind of the market."

European finance ministers sought to reassure investors who have pushed bond yields to records in Ireland and Portugal as leaders at a summit of G20 in Seoul against the debt crisis in Ireland amid speculation that the EU will to intervene with a rescue plan.

Officials from Germany, France, Italy, Spain and the United Kingdom issued a statement saying a South Korean crisis resolution mechanism we are discussing which can force bondholders to share the cost of a rescue would not apply to outstanding debt.

Finance Ireland

Irish Finance, the Ministry today said it is in talks on a request for emergency funds from the EU. Reuters reported today, citing sources in the euro area did not name, that Ireland is in talks about playing a European bailout fund and is very likely to get help.

"Ireland is funded entirely by mid-2011," Finance Ministry said in an email today. "There is no request for emergency funding from the European Union."

As the Irish government put the finishing touches on a plan to find 15 million euros (20.5 billion) in savings, 51 percent of respondents in the latest global survey Bloomberg said he considered a breach of probabilities compared with 42 percent who say it is unlikely. The rows of people waiting for a defect in Ireland have tripled since a survey in June.

The Federal Reserve bought 16 of the 24 titles due in November 2014 to April 2016 that were listed for a possible purchase of the Federal Reserve Bank of New York website. The acquisitions are part of the Fed plan to buy 600 billion U.S. dollars of treasury bonds in June and reinvest the maturity of mortgages.

"The concerns of euros'

"The concerns of the euro and the continuing lack of familiarity with respect to qe been added to the confusion," said Paul Horrmann, an agent in New York, in the tradition Asiel Securities Inc., an interbank broker. "It's still a mess trying to define what the market will go."

The policy-setting Open Market Committee embarked on a second round of unconventional monetary stimulus on 3 November after a benchmark interest rate near zero and a previous program to buy 1.7 trillion U.S. dollars for non-securities down an unemployment rate that is near a 26 - year high.

Confidence among U.S. consumers increased in November, according to a report by Thomson Reuters / University of Michigan.

The preliminary index of confidence in the group rose to 69.3 from a final reading of 67.7 in October. The measure averaged 88.9 in the five years to December 2007, when the last recession. Economists forecast the measure would increase to 69.