Treasurys Rebound as Fed Buys
Author: Deborah Lynn Blumberg</br></br>NEW YORK--Treasurys rallied Monday, recouping some ground after a sharp selloff in the previous week, as recent selling turned government bonds into an enticing bargain for investors.</br></br>Gains also came as the Federal Reserve completed its first purchase of Treasury securities for the week, buying nearly $8 billion in Treasurys. Traders said bond yields had reached levels that looked enticing to buyers after the prior week's sharp move up in yield, sparking purchasing by foreign central banks. Early Monday, the 10-year yield hit a 3.395% high, a level last seen in June, pulling buyers in.</br></br>In afternoon trading, the 10-year was up 9/32 to 3.282%. The two-year added 2/32 to 0.604%</br></br>The five- and seven-year notes were outperforming, up 13/32 to yield 1.900% and up 17/32 to 2.630%, respectively. The seven-year yield had risen by 1.00 percentage point since early November, a move that proved attractive.