Reply #28: US Treasuries in tight summer range, oil a concern [View All]

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-23T133914Z_01_N23332096_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Aug 23 (Reuters) - U.S. Treasury debt prices edged lower on Tuesday, remaining within their narrow technical ranges in vacation-thinned volume as traders marked time ahead of the U.S. housing data.

Traders said the market was also looking ahead to a speech on the economy from Chicago Federal Reserve President Michael Moskow on Wednesday.

Benchmark ten-year notes were 1/32 lower for a yield of 4.22 percent, compared with 4.21 percent late on Monday, remaining within the 4.20 percent and 4.40 percent range which has held over the past two weeks.

"With only existing home sales (as data on Tuesday), we expect thin and rangebound conditions to persist. Any weakness in home sales and/or prices could be seen as a reason to push for the 4.19 percent level on 10 years, but in itself should be insufficient to break decisively through," a research note from BNP Paribas said.

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