Wednesday, 24 October 2012 16:44
LONDON: US Treasuries were range-bound on Wednesday as the market prepared for more supply and as investors did not expect the Federal Reserve to change its current policy in the last monetary policy meeting before presidential elections.
US 10-year government bond yields were up 1.6 basis points at 1.78 percent, a whisker away from a 200-day moving average at 1.805 percent. Bonds came under pressure after gaining on Tuesday on strong results in a sale of two-year government debt.
The Fed appears intent to stick to its bond-buying stimulus with analysts believing it will wait until at least December to make any changes to its current plans to buy $40 billion of mortgage debt per month.
The Fed unveiled a third round of bond purchases last month.
"All eyes are on the FOMC (Federal Open Market Committee), not that anyone is expecting anything dramatic, but they will want to see what their assessment of ...