U.S. Bond Market Early Close Recommended by SIFMA on Sandy - report

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The Securities Industry and Financial Markets Association suggested that trading end at noon New York time in dollar-denominated fixed-income securities in the U.S. because of Hurricane Sandy, Bloomberg reported.

The recommendation applies to trading of government securities, mortgage- and asset-backed debt, over-the-counter investment grade and high-yield corporate bonds, municipal bonds and secondary money market trading in bankers' acceptances, commercial paper and Yankee and Euro certificates of deposit, the New York-based trade group said in a statement posted on its website. The early close will not affect the closing time for settlements.

The U.S. Treasury is scheduled to sell US$32 billion of three-month bills and $28 billion of six-month bills at 11.30 a.m. New York time. Due to "the weather forecast for the coming days" the Treasury moved to today a four-week bill auction that was originally scheduled for tomorrow, according to a Treasury department statement on Twitter. The four-week bill auction will close at 10.30 a.m. New York time.

The Federal Reserve is scheduled to sell $7 billion to $8 billion of Treasuries maturing from November 2015 through December 2015 at 11 a.m. The sales are part of the Fed's program to replace short-term debt in its portfolio with longer-term Treasuries in an effort to keep borrowing costs low.

Fed funds, the U.S. overnight inter-bank lending rate, opened today at 0.17%, within the Federal Reserve's target of zero to 0.25%, after closing at 0.15% on Oct. 26, according to ICAP Plc, the world's largest inter-dealer broker.

SIFMA will continue to monitor conditions to determine any additional recommendations for tomorrow, according to the statement.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities

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