Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

BOND REPORT : Treasurys Edge Up Ahead Of Bernanke Testimony

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/22/2013 | 08:48pm CEST

By Saumya Vaishampayan, MarketWatch

NEW YORK (MarketWatch) -- Treasurys edged higher on Friday ahead of Federal Reserve Chairman Ben Bernanke's scheduled testimony to the Senate Banking Committee next week.

Yields on the benchmark 10-year U.S. Treasury note (10_YEAR) fell one basis point to 1.97%.

Yields move inversely to prices and one basis point is one one-hundredth of a percentage point.

Bernanke's remarks are important in light of the disagreement among Fed officials about the costs of quantitative easing, suggested by the release of the Federal Open Market Committee's meeting minutes on Wednesday, said Michael Cloherty, head of U.S. rates strategy at RBC Capital Markets.

The FOMC minutes showed that many Fed officials were worried about the risks linked to buying more bonds. The Fed's monthly bond-buying program includes $45 billion of Treasurys and $40 billion in mortgage debt.

While trading isn't yet over, Friday marks the 19th consecutive session in which 10-year yields have traded within 5.5 basis points of 2%. Ten-year Treasury yields have remained in a tight range around 2% in February.

On Friday, yields on the 30-year Treasury bond (30_YEAR) fell one basis point to 3.16% and yields on the five-year note (5_YEAR) fell one basis point to 0.831%.

"We've been trading well in the New York session led by Europe," said Jason Rogan, managing director of U.S. Treasurys at Guggenheim Securities.

The European Central Bank said on Friday that commercial banks would repay less than expected of the cheap loans borrowed from the central bank a year ago.

February's reading of the German Ifo Business Climate index, which showed a rise to 107.4 compared with the expected 104.7, helped push Treasurys to overnight lows, Rogan said.

Treasurys subsequently bounced back as the European Central Bank said commercial banks would pay back just 61 billion euros ($80.71 billion) of the second long-term refinancing operation. This signals a concern among commercial banks, which could be expecting the euro-zone economy to contract again, he said. "That's weighing on the markets," Rogan said.

The Italian general election on Feb. 24 and Feb. 25 could trigger a flight to U.S. Treasurys, considered safe-haven assets, if former Prime Minister Silvio Berlusconi wins. Berlusconi has talked about cutting Italian taxes, which would change the deficit outlook for the euro zone. Gains in Italian polls this month by Berlusconi pushed Treasurys higher as investors worried about political uncertainty. Yields on the 10-year Italian bond fell five basis points to 4.4% Friday.

U.S. stocks rose on Friday on the German data and upside earnings surprises from companies such as Hewlett-Packard Co.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
05:27p DEEPMARKIT : Unleashes New Game-Based Promotions Platform
05:26p OFFICE OF FOSSIL ENERGY : DOE Investing $11.5 Million to Advance Geologic Carbon Storage and Geothermal Exploration
05:26p SAIPEM : awarded new onshore and offshore E&C contracts in Indonesia
05:26p SIME DARBY BERHAD : Ulu Remis Palm Oil Mill Cleared for Operations
05:26p J SAINSBURY : Form 8.5 (EPT/RI) - Replacement J Sainsbury Plc
05:26p ECR EUROPEAN CONSERVATIVES AND REFORMISTS´ : Bernd Kölmel considers idea of eurozone budget absurd!
05:26p ABERDEEN UK TRACKER : Compliance with Market Abuse Regulation
05:26p HOME RETAIL : Form 8.5 (EPT/RI) - Replacement Home Retail Group
05:26p ABERDEEN UK TRACKER : Portfolio Disclosures
05:26p PM STATEMENT IN ROME : 27 July 2016
Latest news
Advertisement
Hot News 
13.52%EPIQ SYSTEMS : Agrees to $627 Million Buyout
6.96%LVMH : How LVMH Thrives on Selling Frenchness to Americans
-13.06%TWITTER : Formula One Chief's Mother-in-Law Kidnapped in Brazil
7.02%APPLE : sells more iPhones than expected, shares jump after hours
7.04%FORTESCUE METALS : Output Costs Fall Further, Nears Balance Sheet Goals
Most Read News
07/26 AUSTRALIA POST AUSTRALIAN POSTAL : invests in Newcastle eCommerce
07/26 Wall St. mixed, Apple impresses and Twitter disappoints
04:45a Santander's Brazilian bounce offsets profit hit from one-offs, Brexit
Most recommended articles
11:25aDJSTANDARD CHARTERED : Names Jose Viñ als New Chairman
11:25a Ice Bucket Challenge credited with ALS breakthrough
11:21a STAY LOCAL, ACT FAST : tiny Spanish bank offers survival manual for Italian peers
11:15a FIAT CHRYSLER AUTOMOBILES NV : lifts 2016 guidance, but doubts linger
11:13a LEGAL & GENERAL : L&G reduces pricing discount on UK property fund redemption requests