Treasuries fell on speculation the Federal Reserve will introduce new measures to boost the U.S. economy, curbing the need for steeper interest-rate cuts. Ten-year notes snapped a three-day gain and Asian stocks erased losses after a report in the Wall Street Journal said the Fed may consider lending directly to financial institutions other than banks and also purchase debt from mortgage companies Fannie Mae and Freddie Mac. Traders have almost fully priced in a 75 basis-point cut in the central bank's benchmark rate on March 18. ``The Fed is trying everything it can to help the economy,'' said Kenny Borowicz, a bond-futures broker at MF Global Singapore Ltd., part of the world's largest broker of exchange-traded futures and options contracts. ``As stocks have come back, Treasuries have slipped.'' The 10-year note's yield rose 3 basis points, or 0.03 percentage point, to 3.49 percent as of 6 a.m. in London, according to bond broker Cantor Fitzgerald LP. The price of the 3 1/2 percent security due in February 2018 fell 7/32, or $2.19 per $1,000 face amount, to 100 4/32. The two-year rate climbed 4 basis points to 1.53 percent. Ten-year yields will advance to 3.58 percent by the end of the second quarter, according to 71 analysts surveyed by Bloomberg News. Pacific Investment Management Co., which manages the world's largest bond fund, said yesterday that the Fed should start buying so-called agency mortgage-backed securities to stabilize the market. http://www.bloomberg.com/apps/news?pid=20601087&sid=aU6XuaQQVWdE&refer=home Pimco counseling the FED...ha, ha, ha....good stuff
I'm going to FedEx a copy of my IB statements to the Treasury with my address and the losses highlighted... and I want my check in Euros.