BLBG: Treasuries Little Changed as U.S. Prepares Three-Year Note Sale
By Matthew Brown and Wes Goodman
Aug. 11 (Bloomberg) -- Treasuries were little changed before a record $37 billion auction of three-year notes and a Federal Reserve meeting to discuss interest rates and its program of asset purchases.
The yield on the 10-year note held near the highest level in two months before the first of the three government auctions this week totaling $75 billion. The Federal Open Market Committee will keep its key lending rate on hold at between zero and 0.25 percent, according to all 43 economists surveyed by Bloomberg. The Fed may also decide whether to extend its $300 billion Treasuries-purchase plan.
“The day before the all-important FOMC meeting, markets are stuck,” said Christoph Rieger, a fixed-income strategist in Frankfurt at Commerzbank AG.
The yield on the 10-year note was little changed at 3.78 percent as of 6:42 a.m. in New York, according to BGCantor Market Data. The 3.125 percent security maturing in May 2019 was priced at 94 23/32.
To contact the reporter on this story: Matthew Brown in London at mbrown42@bloomberg.net; Wes Goodman in Singapore at wgoodman@bloomberg.net.
