Treasuries are showing considerable strength Monday morning, as some traders move their money out of stocks. The movement into risk-averse investments comes as the near-term economic prospects took a hit amid concerns about the possibility of bankruptcy for General Motors (GM) and Chrysler.
The benchmark ten-year note has moved roughly sideways in recent trading, hovering near its best levels of the day. Subsequently, the yield on the ten-year note is currently down 6.7 basis points at 2.694 percent.
The worries about the outlook for the auto industry come after the Obama administration indicated that General Motors and Chrysler need to step up their efforts to reorganize in order to receive additional government aid.
At the request of the White House, Rick Wagoner is stepping down as chairman and CEO of General Motors, with Fritz Henderson, GM president and chief operating officer, to replace Wagoner as CEO.
Investors are also looking ahead to President Obama's comments later this morning in regards to the current state of the auto industry and his administration's plans for the future of the embattled sector.
Later on Monday, traders will be looking to the three and six- month bill auctions from the Treasury Department.
Last week, treasuries closed out the week on the downside, driving the yield on the benchmark ten-year note up 13.6 basis points.
The weakness for the week came even though two considerable moves from the Federal Reserve and Treasury Department sparked interest in government backed debt earlier in the week.
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