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Bonds listless ahead of Fed
Treasury prices slip as traders await this week's central bank policy meeting; dollar splits.
NEW YORK (CNNMoney.com) - Treasuries were lackluster and the dollar was mixed Monday as investors were left with no economic reports to digest ahead of the Federal Reserve's fast-approaching policy meeting. The benchmark 10-year Treasury note lost 3/32 to 95-9/32 to yield 5.12 percent, up from 5.11 percent late Friday.
The 30-year bond was little changed at 89-19/32, yielding 5.19 percent. Bond prices and yields move in opposite directions. The five-year note fell 3/32 to yield 5.01 percent, and the two-year note declined two ticks, yielding 4.97 percent. Treasury investors had little economic guidance Monday as no major reports were released. Instead, the market was focused on Wednesday's decision by the Federal Reserve on the future of its rate hike campaign. Market watchers widely expect the Fed to raise the target for its key short-term interest rate for the 16th straight time to 5 percent this week, but whether the central bank will keep raising rates beyond then remains unclear. After the Labor Department reported Friday that job growth slowed in April to its weakest since last summer's hurricanes, bond traders were optimistic the Fed would take a break from its 22-month monetary tightening campaign at its June meeting. Sixteen of 21 U.S. primary government securities dealers polled by Reuters Friday did not expect Fed policy-makers to raise rates again in late June. In currency trading, the dollar recovered slightly from the one-year low it hit against the euro last week but fell further against the yen. The euro bought $1.2715, down from $1.2729 late Friday. The dollar traded at ¥111.63, down from ¥112.49 in the previous session. --from staff and wire reports ________________ Decoding the Fed's confusing message -- click here.
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