* Wall St opens higher on positive jobs data, Best Buy
* ECB collateral move supports Greek bonds, EU summit eyed
* Debt supply worries weigh on US Treasuries
By Walter Brandimarte
NEW YORK, March 25 (Reuters) - Wall Street opened higher on
Thursday, supported by positive jobs data and corporate
earnings, but lingering fears about sovereign debt weighed on
U.S. Treasuries and the euro, which stayed near 10-month lows.
A decision by the European Central Bank to extend the
timeframe for easier rules on collateral beyond 2010 will
likely benefit Greece, easing some of the tension that had
battered stocks and sent the euro to its weakest since early
May 2009.
Still, investors remained highly concerned about the
stability of the euro zone because of Greece's financial
troubles and Wednesday's downgrade of Portugal's credit
ratings.
Diplomatic efforts continued ahead of a European Union
summit that will discuss whether Greece should be receive EU
financial support or turn to the International Monetary Fund.
"It's negative for the euro if the euro zone cannot solve
the problem on its own," said Matthew Strauss, a senior
currency strategist at RBC Capital Markets in Toronto.
"Turning to the IMF could complicate the situation because
IMF assistance comes with a number of strict conditions, both
on the fiscal and monetary sides," he added.
The euro zone's single currency <EUR=> was up 0.14 percent
at $1.3332, after dropping earlier to $1.3285, its lowest since
May 2009.
In the United States, a massive supply of new government
debt weighed on the Treasury bond market.
Wall Street opened higher, however, after data showed the
number of U.S. workers filing new applications for unemployment
insurance fell sharply last week. The number of those
continuing to receive benefits after an initial week of aid
fell to the lowest point since December 2008. []
The Dow Jones industrial average <> was up 67.26
points, or 0.62 percent, at 10,903.41, while the Standard &
Poor's 500 Index <.SPX> gained 7.13 points, or 0.61 percent, to
1,174.85. The Nasdaq Composite Index <> rose 19.00 points,
or 0.79 percent, to 2,417.76.
Shares of Best Buy <BBY.N> jumped nearly 8 percent after
the company announced earnings that beat expectations and
issued an upbeat forecast. []
In Europe, the FTSEurofirst 300 <> index of top
shares climbed 0.91 percent, boosted by financial stocks.
Earlier in the session, the index reached its highest level
since October 2008.
Against the Japanese yen, the dollar <JPY=> was up 0.26
percent at 92.45, near a 10-week high. The pair broke above its
200-day moving average at around 91.55 yen, signaling further
gains.
TREASURIES UNDER PRESSURE
U.S. Treasuries prices added to Wednesday's losses, sending
10-year yields to a 2-1/2 month high, as investors grew nervous
ahead of an auction of seven-year notes scheduled for later in
the day.
The benchmark 10-year U.S. Treasury note <US10YT=RR> lost
1/32 in price, with the yield at 3.8544 percent. The 30-year
U.S. Treasury bond <US30YT=RR> was down 5/32, with the yield at
4.7367 percent.
On Wednesday a $42 billion auction of five-year U.S.
Treasury notes drew poor investor demand, increasing concerns
about the auction of $32 billion in seven-year notes scheduled
for 1 p.m. (1700 GMT).
"We would expect the seven-year auction to not be as bad as
the five-year yesterday although we would still expect a weak
auction," said Suvrat Prakash, U.S. interest rate strategist
with BNP Paribas in New York.
U.S. crude prices were higher, though, supported by the
positive jobs data.
The May crude contract <CLKO> rose 41 cents, or 0.51
percent, to $81.02 per barrel. Spot gold prices <XAU=> rose
$3.05, or 0.28 percent, to $1,090.00.
(Editing by Chizu Nomiyama)
