Wednesday, January 28, 2009

BOND REPORT: Treasurys Under Pressure Ahead Of Fed Meeting

By Deborah Levine

Treasurys were little changed on Wednesday, recovering from earlier losses as the size of the government's stimulus package grew to nearly $900 billion.

Traders are also focused on what the Federal Reserve will say when the central bank ends its policy meeting later on.

Yields on the two-year note (UST2YR), which move inversely to the price, rose 1 basis point to 0.88%. A basis point is 0.01%.

Ten-year note yields (UST10Y) were little changed at 2.53%.

A larger spending plan leads to more debt issuance, making investors demand higher yields.

President Barack Obama's stimulus proposal may be voted on by the House of Representatives later Wednesday.

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