Treasury Prices Close Little Changed
MARKETSCOPE : Treasury bond prices finished little changed on Monday, as investors calmed down from their nervousness last week about the violence in the Middle East and wondered what happens next to interest rates.
The benchmark 10-year note finished flat at 100-21/32 for a yield of 5.04%. The 30-year bond edged down 01/32 to 90-28/32 for a yield of 5.10%.
Stocks were rallying as the bond market closed. Attention now turns to June existing home sales Tuesday, which are expected to contribute to recent signs of weakness in the housing sector.
All Treasury rates are below the Fed funds rate of 5.25%. There is much debate about whether the Fed will pause at its Aug. 8 meeting or hike rates to 5.50%. The Fed will also be watching for signs of inflation.