Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Bond traders wait for Fed's next move

10year.top.pngClick chart for more bond market data. By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Treasuries continued to trade in a narrow range Thursday as investors remained on the sidelines in anticipation that the Federal Reserve will soon take action to stimulate the economy.

Yields for the benchmark 10-year note edged higher to 2.52% from 2.48% late Wednesday. The 2-year note's yield held steady at 0.36% and 5-year note's yields rose to 1.13%. The yield on the 30-year bond inched up to 3.92%.

Yields have fallen into a holding pattern this week as traders take a wait-and-approach leading up to the Fed's next policy meeting next month.

Investors have pushed Treasury yields lower in anticipation that the Fed will launch a second round of asset purchases -- or so-called quantitative easing -- in an effort to stimulate the economy at the conclusion of its two-day meeting Nov. 3.

"Yields haven't moved much because we are waiting for more clarity from the Fed," said Richard Bryant, head of Treasury trading at MF Global. He added that investors are looking for details related to the size, timing and execution strategy for the central bank's asset purchases.

Bryant said traders will likely push yields slightly lower to make room for new supply, but major moves won't come until the Fed outlines its next move.

The Treasury Department announced Thursday that it will auction $109 billion in shorter-term notes and Treasury Inflation-Protected Securities next week, beginning with the sale of $35 billion in 2-year notes on Tuesday.  To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.83%3.86%
15 yr fixed2.95%2.94%
5/1 ARM3.13%3.05%
30 yr refi3.95%3.98%
15 yr refi3.05%3.05%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 16,643.01 -11.76 -0.07%
Nasdaq 4,828.33 15.62 0.32%
S&P 500 1,988.87 1.21 0.06%
Treasuries 2.19 0.02 0.83%
Data as of 9:51am ET
Company Price Change % Change
Freeport-McMoRan Inc... 10.50 0.31 3.04%
Bank of America Corp... 16.36 -0.08 -0.49%
Apple Inc 113.29 0.37 0.33%
Intel Corp 28.42 0.70 2.53%
Alcoa Inc 9.41 0.55 6.21%
Data as of Aug 28

Sections

Efforts to unionize low-wage employees of fast-food franchisees and outside contractors get lift from decision of NLRB. More

China's Vice Finance Minister Zhu Guangyao said if there is "systemic risk to the financial system, we must take action." More

The market volatility in China and the U.S. could hit private companies, especially late-stage unicorns. More

How do you run a successful crowdfunding campaign? Indiegogo's CEO Slava Rubin offers his top tips and mistakes to avoid. More

Looking for something good on Netflix? These entertaining films will help you learn more about finance and investing. More