MARKETSCOPE : Treasury bond prices were falling Monday, as investors eyed the launch of an extraordinary two day Federal Open Market Committee (FOMC) meeting.
The benchmark 10-year note fell 07/32 on the day to 98-14/32 for a yield of 4.70%, while the 30-year bond tumbled 16/32 to 96-13/32 for a yield of 4.73%. The two-year note slid 12/32 to 99-16/32 for a yield of 4.73% near closing time.
The new chairman Ben Bernanke requested the FOMC meeting. Investors speculated about how the Fed will move on interest rates Tuesday.
Lehman Brothers Drew Matus does "not expect substantive changes in the wording of the directive and we expect them to retain the tightening bias statement."
The UBS/Gallup Index of Investor Optimism registered 79 in March, essentially unchanged from the 80 reading in February. This follows a 13 point decline from January to February. Half of all investors responded they are optimistic about U.S. economic growth and more than half are optimistic about the performance of the stock market.