MasterFeeds: Treasury Prices Edge up After Fed Buys $8.9B Bonds - ABC News

Subscribe in a reader Add to Google Reader or Homepage

Jan 25, 2011

Treasury Prices Edge up After Fed Buys $8.9B Bonds - ABC News

Treasury prices Monday inched higher after the Federal Reserve bought close to $9 billion in bonds.

The price of the 10-year Treasury note edged up 12.5 cents. Its yield, which moves in the opposite direction, edged down to 3.39 percent from 3.40 percent late Friday.

The Fed bought $8.9 billion in five- and six-year notes. The central bank also bought $8 billion worth of bonds on Friday. The purchases are part of the Fed's $600 billion bond-buying program which was launched in November to keep interest rates low and encourage lending.

Treasurys have been in a relatively narrow range since the start of new year. Yields had spiked in the last two months of 2010 on expectations of faster economic growth.

Bond strategist at IDEAGlobal Josh Stiles said the Treasury market has been caught between two forces.

"On the one hand the Fed has an extremely easy policy of cheap financing, which prevents much of a sell-off," said Stiles. "But the economy is getting stronger, so the question is how much longer can the Fed keep the rates so low and that's kept the bulls from buying."

Traders tend to invest in low-risk Treasurys when the economy seems weak. Investors have been shifting money out of Treasurys and into stocks since late November.

In other trading, the price of the 30-year note rose 15.6 cents per $100 invested, keeping its yield flat at 4.56 percent from late Friday. The yield on the two-year Treasury note was up slightly to 0.62 percent from 0.61 percent.

The yield on the three-month Treasury bill was unchanged at 0.15 percent. Its discount was 0.16 percent.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.



Treasury Prices Edge up After Fed Buys $8.9B Bonds - ABC News

Share this|
________________________ The MasterBlog

No comments:

Post a Comment

___________________________________
Commented on The MasterFeeds

ShareThis


The MasterFeeds

MasterSearch

Categories

MasterFeeds News Finance china money stocks USA Commodities United States debt Gold Venezuela Dollars bonds Markets economics trading Banks FED Hedge funds Asia LatAm Oil default credit metals Mining international relations central_banks CapitalMarkets HFT russia zerohedge Euro Israel Silver democracy India Japan SEC bailout Africa Liberalism Middle East elections insider trading Agriculture Europe FX Iran Tech Trade VC bitcoin copper corruption Brazil CoronaVirus ForEx Gold Silver NYSE WeWork chavez food real estate Arabs EU Facebook France IPO Maduro SWF TARP UN canada goldman government recession revolution war Abu Dhabi Cannabis Capitalism Citigroup Democrats EIA Jobs NASDAQ PDVSA Palestinians Saudi Arabia Softbank Stats Trump Turkey Ukraine demographics ponzi socialism 13F AIG Berkshire Hathaway CBO Cargill Colombia Cryptocurrency ETF Ecuador Emerging Markets Eton Park Google Hamas Hezbollah Housing IMF LME Lebanon Mindich Mongolia NYC OPEC PIIGS Pakistan Paulson Pensions Peru Potash QE Scams Singapore Spain Syria UK Yuan blockchain companies crash cybersecurity data freedom humor islam kleptocracy nuclear propaganda social networks startups terrorism Advertising Airlines Andorra Angola Anti-Israel Apple Automobiles BAC BHP Blackstone COMEX Caracas Coal Communism Crypto DRC DSK Double-Dip EOS Egypt FT Fannie Mae Form Foxconn Freddie GM Gbagbo History ICO Iraq Italy Ivanhoe Ivory Coast JPM Juan Guaido Lava Jato Libya London M+A MasterEnergy Mc Donald's Miami Mugabe Norway Norwegian Odebrecht Oyo PA PPT Palantir Panama Politics QE2 Republicans Rio Ron Paul ShengNu Soleimani South Africa Tokens Tunisia UN Watch UNESCO UNHRC Uber VW Wyclef anti-semitism apparel bang dae-ho cash censorship chile clothing coffee cotton derivatives emplyment foreclosures frontrunning haiti infrastructure labor levi's mortgages philosophy shipping social media treasury women