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.



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