10/07/2013 15:01:00

BOND REPORT: Treasurys Flat Ahead Of Auction, FOMC Minutes

By Ben Eisen, MarketWatch

NEW YORK (MarketWatch) -- Treasury prices were barely changed on Wednesday ahead of an auction of 10-year notes that may serve as an indicator of whether investors are stepping back into the market after a broad selloff.

The 10-year note (10_YEAR) yield, which moves opposite to price, rose slightly on the day to 2.642%. The 30-year bond (30_YEAR) yield fell slightly to 3.648% and the 5-year note (5_YEAR) yield fell slightly to 1.491%.

The Treasury Department will sell $21 billion in 10-year notes, following an exodus from the market over the last two months that pushed the benchmark note yield up roughly a full percentage point from its lowest levels of the year. Investors pulled record amounts out of bond funds as markets adjusted to the Federal Reserve's indications that it will begin scaling back its bond-purchase program, which has held yields down, later this year.

The auction follows a successful sale of $32 billion in 3-year notes (3_YEAR), but Wednesday's 10-year offering may be a more significant indicator of whether investors want to hold long-term Treasurys in this volatile-interest-rate environment.

The recent rise in rates, including a spike after Friday's nonfarm-payrolls report, may prompt some investors to find that government debt offers attractive yields.

"After a better-than-expected 3-year note auction and a retracement from the highs in yields, we are still heading into the $21 billion 10-year reopening at more attractive levels than pre-payrolls," George Goncalves, head of interest-rate strategy at Nomura Securities, in a note.

The sale comes ahead of the release of minutes from the Federal Open Market Committee's last meeting, which may provide further clues about how Fed members are thinking about the pace and timing of a reduction in bond purchases. Any insight from the Fed could induce further volatility.

"You have a pretty significant move in rates over the last couple months, and I think people are looking for validation of what's next," said Bill Hornbarger, chief investment strategist at Moneta Group. He added: "Everybody wants to get some continued clarification and continued color on what the Fed is thinking in terms of tapering."

Fed Chairman Ben Bernanke is also scheduled to make a public appearance on Wednesday afternoon.

The iShares 20+ Year Treasury Bond exchange-traded fund (TLT) fell 0.16% to $107.23 in early trade.

The stock market was little changed at its open. Prices for U.S. benchmark crude oil surged past $105 per barrel on Wednesday for the first time in over a year. Gold prices rose and the dollar dropped against rival currencies.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

July 10, 2013 10:01 ET (14:01 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
21 Apr
OMXC25
Som tidligere påvist kan bulls køre hen over hvilken som helt bear. Hvis de altså vil. Det kræver at..
31
19 Apr
 
Et opgør med Finanstilsynet er tvingende nødvendigt, hvis tilliden til markedet ikke skal lægges øde..
28
18 Apr
 
LÆS NU FOR HELVEDE NOGEN AF DE 38000 indlæg som siger at børsen er nede!   Det er kraftstejleme da u..
21
20 Apr
VWS
Vestas har en ordrerbeholdning større end de nogensinde har haft, og de sendte en næsten færdigjort ..
20
19 Apr
BAVA
      Vedr. shortsqeeze mm. og den ekstreme kursmanipulation der dagligt foregår på Nasdaq Kbhvn. T..
19
23 Apr
SAS-DKK
TRENT 1000 motor problemstilling kan flytte passagerer ind til SAS og give flot belægnings procent p..
18
23 Apr
VELO
Her kommer lige et oplæg, jeg har haft liggende i en dokumentmappe:     I 2002 mente Lundbeck, at ti..
16
21 Apr
VELO
Jeg har i torsdags købt Veloxis igen efter en længere pause. For efterhånden en del år siden stod de..
16
20 Apr
VWS
hvornår kommer analysen?
16
18 Apr
 
Det er en katastrofe ! Hvis det fortsætter ret meget længere er vi allesammen nødt til at gå ud og l..
16

HSBC Bank Plc : Form 8.5 (EPT/RI) - Lonmin PLC

22/02/2018 10:54:53
FORM 8.5 EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY Rule 8.5 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Name of exempt principal trader: HSBC BANK PLC (b) Name of offeror/offeree i..

Rathbone Brothers Plc : Preliminary announcement of 2017 results

22/02/2018 07:00:19
Funds under management up 14.3% to £39.1 billionThis is a preliminary statement of annual results published in accordance with FCA Listing Rule 9.7A. It covers the year ended 31 December 2017. Mark Nicholls, Chairman of Rathbone Brothers Plc, said: "UK and global investment markets performed well in 2017, with some indices reaching record levels towards the end of the year. This outcome has b..

Elliott Capital Advisors, L.P : Form 8.3 - GKN Plc

21/02/2018 15:25:10
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Full name of discloser: Elliott Capital Advisors, L.P. (for itself and related general partners ..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
VINCI : VINCI starts construction works of the Origine building complex in Nanterre, in the western suburbs of Paris
2
Axiom Real-Time Metrics Exhibiting Fusion eClinical Suite at Clinical Operations in Oncology Trials West
3
Facebook Sued in Class Action That Alleges Users’ Personal Information Was Misused In An Attempt To Influence The 2016 Presidential Election
4
Jostens once again creates championship rings for University of Alabama football
5
Octopus Investments Ltd : Form 8.3 - James Halstead plc

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2018   Disclaimer and Terms of Use
Quote information is delivered by Morningstar.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
24 April 2018 15:38:46
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20180423.5 - EUROWEB4 - 2018-04-24 16:38:46 - 2018-04-24 15:38:46 - 1000 - Website: OKAY