Little Change Evident In Treasuries Rates

There looks to be very little change in the rates on Treasury notes even after Fed Chairman Ben Bernanke announced that interests would be kept close to zero for the foreseeable future and the government intended to sell $115 billion in note – a record number.

After an address to Congress concerning inflation pressures given by Bernanke, the ten-year notes climbed the most in nearly two weeks on July 21. U.S. debt dropped on July 23 as the Dow closed above 9,000 for the first time since January of this year. The Treasury made announcement that the amounts on the following week’s sales, mentioning that it was only the second time the department has sold three coupon issues and an inflation-indexed maturity over five days.

The benchmark 10-year note yield increased by 1 basis point on the week, or 0.01 percentage point, to 3.66%, according to BGCantor Market Data. The yield touched 3.45% on July 21. The 3.125% security set to mature in May 2019 dropped 1/32, or 31 cents per $1,000 face amount, to 95 21/32.

In a report issued by Federal Reserve officials as part of Bernanke’s testimony that highlight intentions to impose more strenuous policies once the labor market recovers and the economy turns around so inflation pressures will lessen.

The United States government still plans to sell $6 billion in twenty-year Treasury Inflation Protected Securities, $42 billion in two-year notes, $39 billion in five-year securities, and $28 billion in notes with seven-year maturation rates. The auctions began on July 27 and have continued over a four-day period.

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