Treasuries Little Changed On Monday, Monday, May 07, 2007 3:47:08 PM

Treasury bonds were little changed on Monday, as traders held their ground ahead of the Federal Reserve decision due out later in the week. The lackluster performance continued the uncertain trading that has marked the past couple weeks.

With no economic data to drive trading, bonds saw mild losses at the outset of the session. Buyers dominated much of the mid-morning, driving treasury yields lower. This added to the move that occurred last Friday, when weaker-than-expected employment data sparking buying in fixed income.

The 10-year yield finished Monday at 4.636%, a decline of less than a basis point on the day.

The U.S. Federal Reserve is scheduled to announce its rate decision on Wednesday. Economists expect that the central bank will once again leave its benchmark rate at 5.25%. However, traders will be curious about what the Fed will say about inflation.

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