Treasurys Eke Out Gains Ahead of Debt Supply

NEW YORK -- Prices of most Treasury securities clung to small gains Tuesday afternoon as ongoing concern over fiscal and debt problems in the euro zone spurred safe haven flows into low-risk U.S. government debt, bolstering demand for a $40 billion sale of three-year notes.

The buying was most pronounced in the morning session after credit ratings agency Fitch Ratings said Portugal may be downgraded if its debt consolidation is insufficient. The warning reminded investors of the sovereign debt issues in the region even as worries over Greece have eased recently after the government thrashed out additional measures to cut ...

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