Relief for US as bond auction restores calm

[eshrag]

Investors scrambled to buy US government debt at an auction of new Treasury bonds yesterday, helping to assuage fears that the markets are running out of patience with the country's enormous deficits. The US Treasury sold $29bn (£19bn) of seven-year bonds at an interest rate at the bottom end of the day's trading range, despite the continuing shockwaves of a disastrous auction of a similar size a day earlier.

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