TREASURIES-Prices rise on light data, Fed double buy-back
* Prices rise in light data day in heavy economic data week * Fed buy $940 mln notes due 2024-2031 * Fed to purchase $3 bln-$4 bln notes due 2019, 2020 By Karen Brettell NEW YORK, Dec 3 (Reuters) - U.S. Treasuries prices edged up on Tuesday on a light day of data before Friday's employment report for November and as the Federal Reserve made two separate bond purchases. Investors are scouring data for indications of whether the U.S. economy is gaining enough strength for the Fed to begin paring back its $85 billion-a-month program. The Fed is now seen by most as likely to begin reducing purchases at its March meeting, but some think that could be brought forward to January, or even this month, if employment data comes in strong. "A particularly strong report would begin to bring forward tapering expectations, and certainly January would become much more in play," said John Canavan, fixed income analyst at Stone & McCarthy Research Associates. Canavan added, however, that he sees a move in December as unlikely. "We don't think that one particularly strong release would be enough to tip their hand," he said. There are no significant data releases scheduled for Tuesday, giving traders a break from an otherwise relatively heavy week. "Data is pretty light today. It will pick up later in the week with a slew of data culminating in payrolls on Friday," said Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York. The ADP employment report and new home sales data will be released on Wednesday, while Thursday's releases will include gross domestic product for the third quarter and jobless claims for the most recent week. At the same time Treasuries were supported on Tuesday by two scheduled Fed buy-backs. The central bank bought $940 million of notes due from 2024 to 2031. It will purchase between $3 billion and $4 billion of notes due 2019 and 2020 later on Tuesday. Benchmark 10-year notes were last up 5/32 in proce to yield 2.77 percent, down from 2.80 percent late on Monday. Thirty-year bonds rose 9/32 in price to yield 3.84 percent, down from 3.86 percent.
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