Treasurys flat after Fed signals no big moves

AP News
Posted: Apr 25, 2012 4:30 PM
Treasurys flat after Fed signals no big moves

Treasury prices were little changed late Wednesday after the Federal Reserve suggested it wasn't planning any new bond buying soon.

The benchmark 10-year Treasury price fell 9.4 cents for every $100 invested. The yield on the note rose to 1.99 percent from 1.97 percent late Tuesday.

Early Wednesday, demand was strong at an auction of five-year Treasury notes. There were $3.09 worth of bids for every dollar in notes sold, above the average of $2.94 over the previous four auctions, according to broker CRT Capital Group.

The government sold the notes at a yield of 0.887 percent, just above the record low of 0.880 percent set in December.

A statement issued after a two-day meeting of the Federal Reserve made no mention of plans for the central bank to launch another round of Treasury buying. In two previous rounds, the Fed bought bonds to lower rates to encourage borrowing and spending.

In a news conference after the statement was released, Fed Chairman Ben Bernanke said another round was "very much on the table" if the economy needs further support.

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The yield on the 30-year Treasury bond rose to 3.15 percent from 3.13 percent late Tuesday. Its price fell 34.4 cents for every $100 invested.

The yield on the two-year Treasury note was unchanged at 0.27 percent. The yield on the three-month Treasury bill rose to 0.09 percent, up from 0.08 percent.