9. Treasurys and Duration

9. Treasurys and Duration - Treasury Bond Prices Rise...

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Treasury Bond Prices Rise Sharply As Yields Fall, Investors Hurry to Realign Positions; Many Factors Add to Rally Wall Street Journal, September 28, 2003 NEW YORK -- Treasury prices rose sharply Friday, with investors scrambling to realign their positions and portfolios as yields continued to defy expectations by falling into critical territory that could spark yet more buying. Traders said a variety of factors contributed to the rally, including short covering, sluggish stocks, month-end and quarter-end portfolio adjustments and the emergence of some buying by mortgage investors. At 4 p.m. Eastern time, the benchmark 10-year Treasury note was at 102 1/32, up 26/32, or $8.125 per $1,000 face value. The yield, which moves inversely to prices, fell to 4.00% from 4.099% Thursday. The 30-year bond rose one full point to 106 18/32, to yield 4.935%, from 5.00% Thursday. The yield on the 10-year Treasury note dipped briefly below 4.00% for the first time since July 18 in intraday trade, a key level for the market. That raised fears that mortgage investors could be forced to buy even more Treasurys, exaggerating the
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This note was uploaded on 09/27/2009 for the course UGBA 133 taught by Professor Distad during the Summer '08 term at Berkeley.

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