NEW YORK — Treasury prices fell Thursday amid worries about an increase in debt supply.
Bond yields, which move opposite to their prices, had fallen too low in recent days to make new debt being auctioned next week very attractive, said Nick Kalivas, a vice president of financial research at MF Global. Investors typically sell out of Treasurys ahead of auctions to maximize yields on the new debt being issued.
The government is scheduled to sell three-year notes, 10-year notes and 30-year bonds next week.
Capital raising plans by Bank of America Corp. and rumors Japan might sell as much as $100 billion of its U.S. Treasurys holdings helped fuel Thursday's sell-off.
Tom di Galoma, head of U.S. rates trading at Guggenheim Partners, said the Japan talk is "pure speculation at this point." However, he said the market is prone to trade on rumors when there is little hard news to move it.
The price of the 10-year Treasury note, which is often used as a benchmark for consumer loans, fell 18/32 to 99 30/32 in late trading. That sent its yield up to 3.38 percent from 3.32 percent late Wednesday.
If concerns about oversupply continue to grow, the yield on the 10-year note could go as high as 3.50 percent, MF Global's Kalivas said.
Charlotte, N.C.-based Bank of America is expected to raise nearly $20 billion in the coming days to help repay government loans it received during the peak of the credit crisis, further adding to concerns of saturation on credit markets.
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Is this the beginning of a sell off??
ReplyDeleteWhat will this move do against gold and for the US dollar?
Yet another shock-wave??
Look, gold is money. All this bodes well for gold. Can there be any doubt it doubles again in the next 12 months? Did you hear moronic Bernanke today? He is not a businessman. He is a putz who should go to hell. To trade 100 cents on the bleeping AIG counterparties was CRIMINAL incompetance. He is a fuc_ face. I hope he gets shot.
ReplyDeleteNot incompetence. Fraud. That is how they are getting away with the Fed's ponzi scams. People are all willing to forgive and ignore mistakes.
ReplyDeleteListening to Mr. Dobb/below-market Countrywide borrower moderate made me want to puke. How do these penny ante crooks get into office and stay there long enough to control government pursestrings. God help our Nation.
ReplyDeleteour country is going down the drain and all anyone is talking about is tiger woods, that is how you know we are fcked!
ReplyDeleteVery well said 7:03!
ReplyDeleteVery well said 7:03
ReplyDelete7:03 makes the top post of the day--I echo "well said". People lust after gossip on stuff like sports nerds and American Idol, etc. Not only should they "get a life", but they should turn their attention to something important to THEM. Not whether or not some sports nerd gets a little on the side. At one time or another most of us have done that as well, that is not anything new or different. Most of us did not attract attention by wrecking a car or getting chased with golf clubs, and most of us are not "famous" names. So the guy can play good golf and make megabucks. He still has the human weaknesses like all of us. So much for that and goodnight. So, noted and put away. Now, spend some time on the collapse of the USA and job loss and crooked Congress people, etc. Trouble is, little to no news in that area on TV or papers. But endless HOURS on Mr Woods and his lusts. Knowing of Mr Woods lusts does not seem somehow to help me with my own worries. Hummmmm.
ReplyDeleteThat rumor was shot down in Tokyo last nite, but it does'nt mean we're out of the woods:
ReplyDeletehttp://themeanoldinvestor.blogspot.com/2009/12/outlook-for-2010.html