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Quarter Ended 31st March – Treasuries This Quarter

Treasury movement was pretty much similar with the events those are going on around us.  Let see these Treasuries –



Treasury  Yields

31st April, 2011

1st January, 2011
Change ( % )






1-Year Treasury

0.277

0.271
2.21%






2-Year Treasury

0.836

0.602
38.87%






3-Year Treasury

1.314

0.996
31.92%






5-Year Treasury

2.28

2.005
13.71%






10-Year Treasury

3.472

3.292
5.46%






30-Year Treasury

4.506

4.332
4.01%



2 & 3–year Treasury saw much increase in their yields comparing to the other tenure of Treasuries .  Better to say long term Treasury yields have not shown much increase . Here I want to look in last years Treasury figures –



U.S. Treasury
12/31/2010
1/1/2010
Change  (%)
1-Year Note
0.271
0.435
-37.70%
2-Year Note
0.602
1.14
-47.19%
3-Year Note
0.996
1.664
-40.14%
5-Year Note
2.005
2.682
-25.24%
10-Year Note
3.292
3.835
-14.15%
30-Year Note
4.332
4.632
-6.47%



As we can see the year end figures are showing much decline in the yield figures . As we know Treasury yield runs opposite to the Treasury value . This quarter Treasury yield figures were much appreciated  in their value comparing to the earlier . So if we consider this for market analysis then it shows that situation is better for this quarter comparing to last year .
Most of the Treasury yields have bottom-out at around January end and mid march &  they also subsequently after bottoming out went up to make tops . From certain angle I think the longer version that is 10-year & 30-year treasuries have made some pattern .
Last year sovereign debt problem of Europe was a big matter of concern so value was high and yields were negatives but that type of concern is less now . But the unrest going on around Middle East , natural disaster in Japan and above all the stock market condition will dictate the terms for Treasuries .
Fed has already purchased lot of Treasuries as according to their Treasury purchase program which will end in June this year but I have doubt that they may not complete the total purchase program !

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