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
29 Aug
 
Har man en halv times tid denne weekend kan den med fordel bruges på to ting: Dels på investeringsdi..
28
01 Sep
7-ST.L-24-GB
Søde venner. Mon Ami's!   I svære tider skal sjælen sankes, sårene slikkes og ego'et poleres af. Det..
21
03 Sep
CHR
Goodwrench, få dig dog et liv istedet for at blande dig i alle tråde her på siden. Du har jo ikke no..
20
30 Aug
OMXC20
20
28 Aug
OMXC20CAP
Så sluttede fredagen og igen tog jeg fejl.I tirsdags var jeg helt sikker på at frygten ville tage ti..
20
29 Aug
NOVO-B
Victoza er det mest solgte, det mest sikre og det mest gennemprøvede type 2 diabetes på markedet.   ..
12
28 Aug
 
De viser det på Ramasjang
12
09:12
OMXC20
Normal 0 21 false false false DA X-NONE X-NONE ..
11
31 Aug
FING-B
Kære Wiseguy, Solo, ready, Netzoom og alle jer andre ægte interesserede  fing-ejere. Kunne I ikke ov..
11
28 Aug
EI
Det vidste jeg godt med al den interesse, der er for mine guldkorn.   Reklamekronerne fosser ind i E..
10

Form 8.3 - Royal Dutch Shell Plc

03/09/2015 15:25:38
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Alliance Trust PLC : Net Asset Value(s)

03/09/2015 13:52:28
ALLIANCE TRUST PLC At the close of business on Wednesday 02 September 2015, the unaudited net asset value per ordinary share of 2.5p, valued on a bid p..

Form 8.5 (EPT/RI) - Innovation Group (The) Plc

03/09/2015 10:22:47
FORM 8.5 (EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Transocean Ltd. Announces Departure of General Counsel
2
Pentair and Urban Organics Collaborate to Advance Aquaponics Industry
3
Medtronic Reports First Quarter Financial Results
4
Bottomline Technologies Announces 2nd Annual Race for a Cause
5
Crawford Announces Changes in Latin America Operations

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2015   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
04 September 2015 11:21:59
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20150903.1 - EUROWEB5 - 2015-09-04 12:21:59 - 2015-09-04 11:21:59 - 1000 - Website: OKAY