AP News

Treasurys rise ahead of Fed meeting, bond sales


Treasury prices rose Monday ahead of a key Federal Reserve meeting and government bond auctions later this week.

The price of 10-year Treasury notes rose 12.5 cents for every $100 invested. The yield was 1.66 percent, unchanged from late Friday.

The Fed is widely expected to announce a new plan to stimulate the economy after a meeting of its policymaking body Thursday. Investors think the central bank will say it will either buy bonds to try to drive long-term borrowing rates lower or to extend the period during which it will keep short-term interest rates it controls near zero.

Previously, the Fed said it would keep those rates near zero through late 2014.

A disappointing jobs report Friday has emboldened investors betting on a big stimulus move by the Fed. The government had said 96,000 jobs were created last month, fewer than analysts had expected. The Fed has a dual mandate to keep inflation and unemployment low.

In addition to the results of the Fed meeting, investors are waiting for a string of U.S. debt sales this week. The government plans to auction $34 billion of 10-year notes and 30-year bonds Wednesday and Thursday.

In other bond trading, the price of the 30-year bond rose 43.75 cents for every $100 invested. The yield fell to 2.81 percent from 2.82 percent late Friday.

The yield on the five-year Treasury note was unchanged at 0.65 percent. The yield on the two-year note fell to 0.25 percent from 0.26 percent. The yield on three-month T-bill was unchanged at 0.10 percent.


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