Trade in US Treasury bonds hesitant
Trade in US Treasury bonds was hesitant on Monday ahead of a 2-day meeting of the US Federal Reserve scheduled to begin on Tuesday.
Interest rates are expected to be raised a quarter of a point to 3.25 percent during the meeting. Yields on 2-year Treasuries rose 0.9 basis points to yield 3.588 percent while yields dropped and prices rose in longer-dated bonds.
The 10-year issue lost 1.7 basis points to a yield of 3.902 percent, while 30-year bonds fell 3 basis points to yield 4.193 percent.
A tightening supply of government bonds helped raise the prices on longer-term issues.
The Treasury announced that it would only sell $20 billion worth of 3-year bonds on Tuesday. This is down from $22 billion in May and $24 billion in April.
Additionally, an announcement is expected in August concerning whether the Treasury will once again begin to issue 30-year bonds. It suspended the issuance of 30-year notes in 2001.