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
26 Jul
 
Pouli,   Forum er i den grad domineret af børn, studerende, ludomaner, buffet-wannabees and what hav..
24
28 Jul
GEN
Der er lidt nyt fra Morphosys angående deres CD38 antistof - det lader heldigvis til at gå lidt lang..
17
30 Jul
 
Jeg er helt vild med vendingen "og investere mine penge i aktier ud fra en strategi jeg mener vil sl..
13
29 Jul
FING-B
XO/Sologstrand, Mackeith, Vildum, Swiftnick og andre FING-skeptikere   1) Er vi enige i, at markedet..
12
28 Jul
 
Dejligt at der er nogen som kan svare "sobert" på et stillet spørgsmål.   Svaret kan indeholde ironi..
12
25 Jul
EXQ
Så lykkedes det at komme til Vedbæk for at besøge Exiqon. Damen, en kammerat og jeg selv blev taget ..
12
29 Jul
BIOPOR
I er tydeligvis enormt begavede og succesfulde alle tre. Men kunne det være muligt for jer at måle j..
10
27 Jul
 
Jeg har opdateret mine udbyttelister med tilbagekøb.   http://www.proinvestor.com/boards/69564/    
10
28 Jul
VELO
28/07/2014 08:30:00 - OMX Copenhagen, News     VELO: Veloxis Pharmaceuticals A/S - Envarsus ® får ..
9
27 Jul
BIOPOR
Alpe, det jeg skriver, skal absolut ikke ses som en meget udenoms forklaring.   men, trist du kun fo..
8

Tech Companies Send Criticism Along With NSA-Related Data -- Update

04/02/2014 00:06:00
By Danny Yadron Technology companies including Google Inc. and Microsoft Corp. released new figures on the amount of data requests they received from U.S. ..

U.S. Hot Stocks: Hot Stocks to Watch

03/02/2014 14:07:00
Among the companies with shares expected to actively trade in Monday's session is Herbalife Ltd. (HLF). Herbalife Ltd. (HLF) raised its fourth-quarter outl..

Pfizer Study Meets Primary Endpoints

03/02/2014 13:05:00
Pfizer Inc. (PFE) said Monday that a Phase 2 trial of its advanced breast cancer treatment met its primary endpoint. Pfizer said a study comparing the effec..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Tesoro Corporation Reports 2014 Second Quarter Results
2
Tesoro Logistics LP Reports Second Quarter 2014 Results
3
EDF : Half-year 2014 results up. Good operating performance. 2014 targets and 2018 vision reiterated
4
RECOMMENDED CASH OFFER FOR HYDER CONSULTING PLC by ARCADIS UK INVESTMENTS B.V. a wholly-owned subsidiary of ARCADIS N.V.
5
Bonanza Creek Energy, Inc. Changes the Time of its Second Quarter 2014 Earnings Release and Conference Call
Euroinvestor around the globe: Euroinvestor.dk | Euroinvestor.se | Euroinvestor.no | Euroinvestor.fr | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Copyright Euroinvestor A/S 2014   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.
 
31 July 2014 14:29:10
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20140723.1 - EUROWEB4 - 2014-07-31 15:29:10 - 2014-07-31 14:29:10 - 1000 - Website: OKAY