Bonds fall ahead of major auction
Yields on 2-year, 30-year invert in Monday trade, often a sign of slow growth or recession ahead.
NEW YORK (CNNMoney.com) - Prices on short-term Treasuries fell Monday as investors looked ahead to the outcome of a major bond issue later in the week. The 30-year T-bond gained slightly. The Treasury will issue $48 billion in 3-,10- & 30-year bonds between Tuesday and Thursday. Investors expect strong demand for the issue, especially for 30-years, with high levels of interest from foreign investors, as in prior auctions.
The 10-year note fell 3/32 to 99-20/32 to yield 4.55 percent, up from 4.53 late Friday. The 30-year bond gained 1/32 to 111-1/32, yielding 4.63 percent, relatively unchanged from the previous session. Bond prices and yields move in opposite directions. The two-year note slipped two ticks, yielding 4.62 percent. The five-year note fell 2/32, yielding 4.51 percent. The yield on the two-year note rose above that of the 30-year bond briefly for the first time since December 2000, Reuters reported. That kind of move in bond yields, known as a yield curve inversion, can be a signal of slower economic growth -- or recession -- ahead. Bond markets have little notable data to look forward to on Tuesday, but there will be a release on consumer credit. In currency trading, the dollar gained against the euro, but fell versus the yen. The euro bought $1.1961, down from $1.2026 late Friday. The dollar bought �119.03, up from �118.93 in the previous session. _________________ Click here for updated bond charts.
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