US Treasury Markets
11/3/2009 9:49 AM ET
(RTTNews) -
Treasuries are moving modestly higher in morning trading on Tuesday, as a lack of first tier economic data and the beginning of the Federal Reserve's two-day rate setting meeting has moved capital into the safety of government backed bonds.
The benchmark ten-year note opened higher and is holding onto modest gains. Subsequently, the yield on the note, which moves opposite of its price, is trading at 3.405 percent, posting a loss of 1.7 basis points.
The benchmark yield has remained in a range in recent sessions as traders continue to analyze the prospect of an imminent economic recovery.
Amid a light day on the economic front, traders will be presented with a Commerce Department report on factory goods orders for September at 10:00 a.m. ET. Economists expect that orders for factory goods rose 0.8 percent during the month after declining by 0.8 percent in August.
The Federal Open Market Committee begins its two-day rate setting meeting today and is scheduled to make an announcement regarding the near-term direction of monetary policy at 2:15 p.m. ET on Wednesday.
After its two-day meeting in September, the Federal Open Market Committee announced that it would maintain the target rate for the federal funds rate at 0 to 0.25%, saying it continued to believe that economic conditions warrant exceptionally low levels of the federal funds rate for an extended period.
The FOMC gave a modestly upbeat assessment about growth by saying that economic activity is picking up following its severe downturn, a change from its previous meeting's assessment that economic activity is leveling out.
by RTT Staff Writer
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