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 Aug
VELO
Kære debatdeltagere   Det har gjort et meget stort indtryk på mig, at så mange har læst og sat pris ..
35
20 Aug
BIOPOR
  Bioporto kom med Q2 regnskab fredag den 8/8, og holdt efterfølgende en investor præsentation. Jeg ..
29
19 Aug
VELO
Som overskriften så pænt fortæller, så vil jeg gerne have Match tilbage. Og fordi at jeg tør og skri..
29
21 Aug
VELO
Hej Westphal   Ja - og en audiocast ligger tilgængelig på Veloxis' hjemmeside: http://www.media-serv..
27
19 Aug
VELO
Jeg har rejst en del denne sommer, me har ind imellem lige været inde for at se, om der er nyt. Sene..
23
17 Aug
 
Janemlig, jeg synes det er forstemmende man kan leve med fri adgang til alle informationer og så all..
17
20 Aug
VWS
Tadaaa! Tillykke d'herrer. Det er en stor dag i Euroinvestors Vestas forum. Det her må være først..
15
18 Aug
 
  Financial Times har i dag bragt en ganske interessant artikel. Federal Reserve har d. 5. August i ..
15
16 Aug
 
Jeg sagde at jeg var blevet fartblind på aktiemarkedet i sidste uge. Jeg fik meget ud af de svar som..
13
20 Aug
VWS
Gud bedre det!   Vestas har en brutto margin på over 19 % og har lavet en opjustering som endda ser ..
12

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
Klépierre : Status update on Klépierre's intended exchange offer for Corio in accordance with Dutch regulatory requirements
2
KLEPIERRE: DISCLOSURE OF TRADING IN OWN SHARES BEFORE THE LAUNCH OF A TENDER OFFER
3
Intermediate Capital Group plc : Transaction in Own Shares 22 August 2014
4
EUROCOMMERCIAL PROPERTIES N.V. TRANSACTIONS BUYBACK PROGRAMME
5
Share buyback transactions
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.
 
23 August 2014 08:27:54
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20140819.1 - EUROWEB6 - 2014-08-23 09:27:54 - 2014-08-23 08:27:54 - 1000 - Website: OKAY