Tuesday’s long-end rally may not last the week
NEW YORK, Sept 6 (Reuters) – The prices of the U.S.
Treasury securities with the longest maturities rose on Tuesday
as more investors piled into bets that the Federal Reserve
would soon buy 30-year bonds, while fresh worries about Europe
fueled a safety bid.
But the price rally that pulled the 10-year yield briefly
to a 60-year low may not last the week, analysts said, as the
Treasury market faces the prospect of fresh auctions and less
tortured-looking U.S. economic data.
U.S. bank CDS spreads widen, show more stress
NEW YORK, Sept 2 (Reuters) – The cost of insuring against a
default on bonds issued by major U.S. banks rose on Friday,
driven by new recession worries after a grim jobs report and
fears of coming action on banks’ past mortgage lending
practices by the U.S. government.
A U.S. regulator is filing lawsuits against major banks,
accusing them of bundling subprime home loans into bonds that
never should have been sold to investors and causing mortgage
finance giants Fannie Mae (FNMA.OB: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FMCC.OB: Quote, Profile, Research, Stock Buzz)
to lose billions, a source said. [ID:nN1E7810JZ]
Market expects Operation Twist in September
NEW YORK (Reuters) – Bond investors see Federal Reserve action to boost the flagging U.S. economy as practically a done deal after Friday’s dismal jobs report.
Government data showing the economy failed to create new jobs last month heightened speculation the Fed will launch a program this month to pump money into the economy by pushing down long-term borrowing rates.
Shrinking CP market could add to T-bill squeeze
NEW YORK, Sept 1 (Reuters) – The commercial paper market
shrank in the latest week, the Federal Reserve said on
Thursday, offering evidence that French banks were under
pressure in unsecured funding markets.
The banks have been recognized as a channel through which
the European sovereign debt crisis can reach U.S. markets, and
the latest information suggests their struggle could add to
illiquidity in U.S. money markets.
Month-end positioning highlights cash squeeze
NEW YORK, Aug 31 (Reuters) – There’s no shortage of cash in
financial markets but those who have it aren’t willing to lend
it to banks and companies that need it most, and month-end
balance sheet polishing is making access even harder.
During the course of the summer, investors have been
withdrawing money from prime money market funds, which have in
turn cut back on dollar loans to European banks. Many investors
have been doing little more than storing their cash in the
safest possible places, such as the best-capitalized banks.
They are waiting for a clearer picture of the state of the U.S.
economy, as well as word on more easing measures from the
Federal Reserve, before locking it into riskier assets.
Jobs data will help traders guess Fed move
NEW YORK (Reuters) – Starting Wednesday, three data points coming out this week on jobs in August will help Treasury traders predict the direction the economy could take, but they probably won’t move prices drastically themselves, analysts said on Tuesday.
Many economists fear the United States is teetering on the edge of another recession, pushed by recent turmoil in Washington over the U.S. debt ceiling as well as upheaval in the Middle East and a debt crisis in Europe. A clear view of the August U.S. employment picture may either confirm or work to dispel that fear.
handle on the 10-year note? Maybe
NEW YORK (Reuters) – The idea of a 1-handle for 10-year notes — a yield of between 1 percent and 1.99 percent, that is — would have sounded absurd a few weeks ago, but now some analysts think it could happen on Tuesday.
Or Wednesday or Thursday, for that matter, or on any day on which some U.S. economic data point could come in surprisingly below expectations or a new development in the euro zone sovereign debt crisis could flip the fear switch back on.
Debt prices fall as data boosts economic outlook
NEW YORK, Aug 24 (Reuters) – U.S. Treasuries debt prices
fell on Wednesday after a surprisingly strong report on durable
goods orders provided relief against fears that the economy
could slip back into recession.
The impending sale of five-year notes also contributed to
selling.
The selling accelerated after the nonpartisan Congressional
Budget Office forecast a lower ratio of debt-to-gross domestic
product in the coming years, although the new projections did
not take into account the latest economic data.
[ID:nN1E77N0GG]
Sale of Treasuries picks up as outlook brightens
NEW YORK, Aug 23 (Reuters) – Prices of U.S. Treasuries fell
on Wednesday amid a suddenly brightening economic outlook on a
report durable goods orders rose more than expected in July.
Major stock indexes gained nearly 1 percent, also
pressuring Treasuries, after the nonpartisan Congressional
Budget Office forecast a lower debt-to-GDP ratio in the coming
years. [ID:nN1E77N0GG]
Brighter data causes small selloff in Treasuries
NEW YORK (Reuters) – Prices of U.S. Treasuries fell on Wednesday after the Commerce Department reported a larger-than-expected rise in durable goods orders in July.
New orders for long-lasting U.S. manufactured goods rose on strong demand for aircraft and motor vehicles.

