U.S. Treasurys End Lower

Treasury ended Monday with modest losses, as bond investors were caught between a disappointing report on new-home sales and the upcoming Federal Reserve’s policy meeting, at which the U.S. central bank is expected to announce a further move to taper its stimulus program.

At 3 p.m. EST, the benchmark 10-year note edged down 8/32 in price to yield 2.766%. The 30-year bond fell 15/32 in price to yield 3.679%. Bond prices rise when yields fall.

The Treasury market seesawed throughout the trading session. Safe-haven bonds were initially bid up after Asian stock markets posted sharp losses overnight, led by a 2.5% drop in the Nikkei index. But the flight-to-quality trade was somewhat arrested as the U.S. trading session got underway and investors took some profits ahead of the Fed’s policy meeting.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.