Forex trading store

By Emily Flitter

NEW YORK, July 21 (Reuters) – Prices in the emporium for U.S.

government debt were little changed on Wednesday, because traders

awaited an appearance by Federal Reserve Chairman Ben Bernanke

and the midsummer morning’s market volume remained light.

Bernanke’s testimony before the Senate Banking Committee forward

the state of monetary policy and the economy will be the requisite

event of the day, and traders said they expected volume to right of selection

up as his 2 p.m. appearance drew nearer.

Market participants decree be watching for any hint of

whether the Fed will implement another round of quantitative

easing now that the U.S. household recovery has slowed.

‘Our view is no new surprises, so in that place’s no strategy for

us there,’ said Adam Brown, co-lead of U.S. Treasury trading at

Barclays Capital in New York. ‘If you hold the view that he’s

going to speak a lot around more QE you could go long (on the

market).’

Brown uttered a Treasury rally was possible if Bernanke were

to state the Fed’s intentions despite further easing, though he

thought such a statement was unlikely.

‘If he doesn’t exhibit about it at all, some of the people

that are even now set up for it may need to reverse so there

determine be selling,’ he added.

Brown predicted a yield range of between 3.12 percent and

2.90 percent for the benchmark 10-year Treasury comment .

‘We’d be shocked if we broke out of that supposing that not there’s

something really surprising,’ he said.

But another 10-year yield invitation saw a much lower end to the

possible range. In a remark to clients, William O’Donnell, head

of Treasury strategy at RBS Securities in Stamford,

Connecticut, called during a range of between 2.75 percent and

3.33 percent ~ the sake of the coming quarter.

‘Given the backdrop of long-term bullish constituent studies

and supportive fundamentals (faltering global growth and

looming fiscal harshness), I’d much rather buy that range

support than sell the tier resistance,’ O’Donnell wrote. ‘Thus

our tactics will almost exclusively reason about being long or flat,

not short.’

The 10-year note was away 1/32 in price and yielding 2.96

percent. The 30-year link was unchanged in price,

yielding 3.98 percent.

Two-year Treasury notes traded unvaried in

price for a yield of 0.59 percent, while the five-year memorandum

yield was steady at 1.70 percent.

(Editing by Chizu Nomiyama )

Keywords: MARKETS BONDS ——-MARKET SNAPSHOT AT 8:49 a.m. EDT (1249 GMT)——- Sept T-Bond 127-22/32 (-09/32) Sept 10-Year catalogue 123-03/32 (-05/32) Change vs Current Nyk yield Three-month bills 0.155 (+0.00) 0.157 Six-month bills 0.195 (+0.00) 0.198 Two-year short letter 100-03/32 (+) 0.584 Five-year note 100-28/32 (+01/32) 1.691 10-year memorandum 104-19/32 (+) 2.957 30-year bond 106-26/32 (+01/32) 3.982 Keywords: MARKETS BONDS

(emily.rag@thomsonreuters.com; +1-646-223-6310; Reuters messaging; emily.flitter.reuters.com@reuters.net)

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