Treasury Bonds Still Losing Value
MARKETSCOPE : Treasuries extended their losses on Wednesday, tailing weakness in global bond markets and underpinned by the perceived risks involved with the pending change of Federal Reserve Chairman.
The 10-year note fell 13/32 to 97-10/32 for a yield of 4.59%, while the 30-year bond sank 27/32 to 108-12/32 for a yield of 4.80%.
Investors bid for Wednesday's two-year note auction. There were no economic reports to drive market direction.
Market players bet on whether the Federal Open Market Committee will raise rates 25 basis points to 4% at next Tuesday's meeting to combat inflation. Investors continued wondering what happens after Federal Reserve Chairman Alan Greenspan leaves his post during the coming months, following news in recent days of Ben Bernanke's nomination to take his place on Feb. 1.