Long-term Treasuries Fall as Investors Seek Risk
Long-term treasuries fell on Monday as investors shifted investment to riskier investments amid a flood of new notes this week and a reassessment of the U.S. economy.
Traders are factoring in that later this week, the U.S. government will issue a new supply of bonds, which could lower prices. It will auction $13 billion worth of 10 year notes on Wednesday and $9 billion worth of 30-year bonds on Thursday.
Benchmark ten year notes fell 13/32 in price to yield 3.64 at 5:22 p.m. from 3.60 late Friday.
The Federal Reserve has lowered interest rates steeply in recent weeks in an effort to boost the U.S. economy. The benchmark fed funds rate stands at 3 percent and may continue to cut rates.
The two year, which is sensitive to interest rates note rose 1/32 in price to yield 2.06.
© Copyright IBTimes 2024. All rights reserved.