ok dan se ci sono apro io , intanto il T-Bond ha recuperato la mezza figura persa e va sui massimi di giornata , insomma il paradiso del trading-intraday
US Treasuries struggle to make much of Fed words
(Adds Fed comments, reaction)
By Wayne Cole
NEW YORK, July 23 (Reuters) - Treasuries were struggling to hold early gains in choppy trade on Wednesday even though a top Federal Reserve official said the central bank should be prepared to cut rates to zero if needed.
Fed Governor Ben Bernanke also said the Fed had growing confidence that nontraditional measures to fight deflation would work and that they would include measures to bring down long-term yields.
This seemed to revive the idea of buying longer-term Treasuries, which Chairman Alan Greenspan just last week said was very unlikely to happen.
Bernanke emphasized that nontraditional measures would only be considered once rates were near zero and it was possible that keeping official interest rates at current levels for a considerable period would be enough to ensure economic growth.
The market's initial reaction was to rally on the comments but, as so often recently, bears were quick to step in.
"Bernanke was pretty dovish overall, but the market mentality is still to sell rallies," said Dominic Konstam, head of interest rate strategy at Credit Suisse First Boston.
He thought Bernanke was trying to clarify the Fed's thinking on policy, saying that while the central bank was bullish on growth, it was also still mindful of deflation.
"The theme is that they're optimistic about recovery in this quarter and next, but if it doesn't happen then they'll be ready to cut rates again, though that looks like something for next year," added Konstam.
Also speaking later Wednesday is Dallas Fed President Robert McTeer and signs are he will be upbeat on the economy.
In an interview with CNNfn on Tuesday, McTeer said the stars were aligned for a strong recovery and boldly added that growth could run at 5.0 percent for two years without causing inflationary problems.
With new action -- either on rates or unconventional steps -- seemingly off the table for now, it was tough for Treasury investors to get too excited.
The benchmark ten-year note <US10YT=RR> was up 9/32 in price but well off early highs, leaving yields at 4.09 percent from 4.13 percent late on Tuesday. The erratic 30-year bond <US30YT=RR> rose 8/32 to give a yield of 5.03 percent from 5.04 percent, while the five-year <US5YT=RR> inched up 8/32 for a yield of 2.92 percent from 2.98 percent.
NOTES FOR SALE
Short-term debt fared a bit better thanks to the talk of cutting rates toward zero, and the two-year note <US2YT=RR> rose 3/32 in price for a yield of 1.47 percent from 1.53 percent late on Tuesday.
The market still has an auction of $25 billion in new two-year notes to digest and traders are uncertain of its reception given the recent rout in the market.
The last sale in June drew bids for 1.84 times the amount on offer and anything close to that would be considered decent in the current dismal climate.
"If the market mood wasn't so lousy, you could build a good case for expecting a strong auction," argued one trader at a U.S. primary dealer.
"Yields are the highest they've been since April; there's a rich gap of 56 basis points between the two-year and Fed funds and we've got the Fed promising not to hike in the foreseeable future." ((Reporting by Wayne Cole; editing by Phil Berlowitz; Reuters Messaging:
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