Treasuries
The two-year finished the day flat to where is ended last week, and the ten-year was lower by 3/8. The benchmark curve was 4.7 basis points steeper on the day, and remains at +198.7 bps. A basis point represents .01%.
Treasury prices see-sawed throughout the day but were mostly down by the end of the afternoon. Concerns over this week’s coming supply ruled the day, but a small rally appeared late in the morning after the Fed announced the results of their Treasury bidding. The Treasury will auction $6 billion of the 10-year TIP on Tuesday, a new 3-year issue on Wednesday and reopen the on-the-run 10-year nominal note.
The Fed purchased $2.53 billion of Treasuries today in the 10-17 year area. As expected, buying was concentrated in the shorter end of the maturity range with 65% of the buying in 2019 and 2020 maturities. The Fed will buy more Treasuries on Wednesday.
Have a great evening.
Cliff J. Reynolds Jr.
Junior Analyst
Tuesday, April 7, 2009
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