For Retirees, Savers, Pension Funds - Assault Continues

Frozen Landscape

Treasuries rose, pushing the two- year note yield to a record low, a day after the Federal Reserve reversed plans to exit from aggressive monetary stimulus. Benchmark 10-year notes gained for a second day after the central bank decided to reinvest maturing agency and mortgage- backed securities in Treasuries to support an economic recovery that the Fed said “has slowed.” The government is scheduled to auction $24 billion of 10-year notes today, the second of three sales this week totaling $74 billion. “This is a bullish backdrop for Treasuries,” said Nick Stamenkovic, a fixed-income strategist in Edinburgh at RIA Capital Markets Ltd., a broker for banks. “Growth is going to be sluggish, and inflation is not going to be a concern.” The yield on the two-year note fell 2 basis points, or 0.02 percentage point, to 0.50 percent at 7:15 a.m. in New York, according to BGCantor Market Data. The price of the 0.625 percent security maturing in July 2012 gained 1/32, or 31 cents $1,000 face amount, to 100 1/4. The yield dropped earlier to 0.4892 percent, the lowest on record. Read more here:

For Retirees, Savers, Pension Funds - Assault Continues