Scribbles

[Bryan (a.k.a. Bryan)]

NEW YORK, Oct 31 (Reuters) - U.S. benchmark 10-year Treasury notes rallied more than a full point on Wednesday after the Treasury said it would no longer sell 30-year bonds, sparking a powerful bond market rally.
"The (30-year) bond is dragging up all other areas of the Treasury curve without a doubt. Stocks are also helping," said William Sullivan, market analyst at Morgan Stanley, referring to an early afternoon dip in the Dow Jones industrial average.
In its quarterly refunding announcement, Treasury said it would sell no more 30-year nominal or inflation-indexed bonds, taking the market by surprise and instantly giving the long bond a scarcity value, sending prices up more than 5 points.
At 11:05 a.m. EST (1605 GMT), benchmark 10 year notes were up more than a full point at 105-24/32, yielding 4.27 percent.
((U.S. Financial Markets, [phone]))


Check out this move: One of the biggest in recent history.
30-Year T-Bond (E) December 01
http://www.cbot.com/cbot/charts/detail/0,1551,13+44+122+ZB+Z1+2+4,00.html



Wednesday, 31 October 2001 17:58:08