Treasury Prices Higher
MARKETSCOPE : Treasuries bounced back modestly on Monday from last week's sell-off.
The 10-year note fell 06/32 to 96-00/32 for a yield of 4.64%, while the 30-year bond sank 15/32 to 107-30/32 for a yield of 4.83%.
Market players braced themselves for the $18 billion of 3-year notes scheduled for Tuesday, $13 billion 5-year notes Wednesday, and $13 billion in 10-year notes Thursday.
The Treasury's $4 billion in cash management bill sale was strong, helped by the very small size. The bid cover was 5.13, up from 2.68 at the last CMB offering on Oct. 5, which was much larger at $13 billion. Stone & McCarthy's John Canavan thinks the 10-year yield could top out soon at the 4.85% level, which he says has been a top for the past 3 years.
Market players also waited for news of Wholesale Inventories on Wednesday, a report on Trade this Thursday, and Michigan's preliminary November Sentiment Index. Some markets are closed Friday for Veteran's Day.