October 30, 2017 / 1:36 PM / a year ago

TREASURIES-Yields fall before busy week; Fed chair nomination awaited

    * Data, Fed meeting, Fed chair announcement in focus
    * Treasury refunding watched for signs of new maturity

    By Karen Brettell
    NEW YORK, Oct 30 (Reuters) - U.S. Treasury prices gained on
Monday as investors readied for a busy week that includes a
heavy slate of data, the Treasury Department’s refunding plans,
a Federal Reserve meeting and the expected announcement of a new
Fed chair.
    Yields fell after data showed that U.S. consumer spending
recorded its biggest increase in more than eight years in
September, probably as households in Texas and Florida replaced
flood-damaged motor vehicles, but underlying inflation remained
    Many investors are seen as reluctant to trade before this
week’s numerous catalysts, however.
    “At the moment, people are cautious; there’s not a real
great reason to be taking a lot of big positions today,” said
Thomas Simons, a money market economist at Jefferies in New
York. “It is a very busy week, (with) a lot of potentially
market-moving events already on the calendar.”
    Benchmark 10-year notes             were last up 12/32 in
price to yield 2.39 percent, down from 2.43 percent on Friday.
    Other economic releases due this week include manufacturing
data on Wednesday and Friday’s jobs report for October.
    Investors are also waiting to find out who U.S. President
Donald Trump will nominate as head of the Federal Reserve.
    Trump is leaning toward Fed Governor Jerome Powell, two
sources familiar with the matter said on Friday.             
    Politico reported on Monday that the Fed chair announcement
is likely to come on Thursday.
    The U.S. central bank is expected to leave interest rates
unchanged when it concludes its two-day policy meeting on
Wednesday, but investors will be watching for any new
indications that a rate hike is likely in December.
    The Treasury Department is also due to announce its funding
needs for the next two quarters on Wednesday.
    Traders will be watching for any new indications that the
government may introduce a new long or ultra-long debt maturity
as it faces higher funding needs over the coming years.

 (Editing by Lisa Von Ahn)
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