U.S. Treasuries were little changed, holding last week's gains, before industry reports
likely to show slumping home prices and consumer confidence. Ten-year notes
outperformed two-year debt, narrowing the spread between the securities, before the
Treasury sells $30 billion of two-year notes tomorrow. Three of the banks that trade
with the Federal Reserve, so-called primary dealers, said policy makers may delay
raising borrowing costs this week. The yield on the benchmark 10-year note was little
changed at 4.17 percent by 8:06 a.m. in New York, according to bond broker
BGCantor Market Data. The price of the 3.875 percent security due in May 2018 held
at 97 21/32. The two-year yield rose 2 basis points to 2.91 percent. Treasuries pared
earlier gains as U.S. stock-index futures rose on speculation rising commodity prices
will continue to boost the earnings outlook for energy companies and metal producers.
Futures on the S&P 500 expiring September rose 0.3 percent, to 1,323.2, indicating
the index may rebound from a three-month low. The market is up to .25 worse in
discount this morning.
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