Adam in CO
05-08-2007, 04:20 PM
U.S. Treasuries gained before an auction today of 10-year notes and a Federal Reserve policy meeting tomorrow. Economists predict policy makers will keep the target for the overnight lending rate between banks unchanged at 5.25 percent, according to a Bloomberg News survey. The government will auction $13 billion of securities today, after selling $14 billion of three-year notes yesterday at yields close to dealer forecasts. The yield on the benchmark 10-year note declined almost 2 basis points, or 0.02 percentage point, to 4.61 percent at 8:33 a.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 4 5/8 percent note maturing in February 2017 increased 3/32, or 94 cents per $1,000 face amount, to 100 3/32. Two-year yields, more sensitive to interest-rate expectations, declined almost 1 basis point to 4.66 percent.