* Prices rise, Fed seen unlikely to taper before 2014
* Fed policymakers to meet next Tuesday, Wednesday
* Treasury to sell $96 bln in 2, 5, 7-yr debt next week
By Karen Brettell
NEW YORK, Oct 25 (Reuters) - U.S. Treasuries prices edged up
on Friday as investors waited on new signs about the strength of
the economy, which is key to the timing of when the Federal
Reserve is likely to reduce the size of its bond purchase
Treasuries have been largely rangebound since Tuesday, when
yields fell on data that showed employers hired fewer workers
than expected in September, stoking fears the economy was
slowing even before the government's 16-day shutdown.
A backlog of releases are now scheduled as the government
catches up on delayed data. The Fed is viewed as unlikely to
change it purchase program from $85 billion a month when it
holds its policy meeting next week, with most seeing the central
bank likely to maintain the same rate of purchases until next
"The market continues to do better here in an environment
where the Fed is not tapering quantitative easing until sometime
in 2014," said Gary Pollack, head of fixed income trading at
Deutsche Bank Private Wealth Management in New York.
Benchmark 10-year notes were last up 2/32 in
price to yield 2.51 percent. The yields have fallen from 3.00
percent on September 5, before the Fed surprised investors by
leaving its bond purchase program unchanged.
The effects of the government shutdown and wrangling over
raising the debt ceiling are expected to linger for several
months, muddying insight into the economy.
"The economy looks a little disappointing and we're not
going to get a clear picture of what the economy is doing until
we get figures for the month of December, which come out in
January," Pollack said.
New orders for long-lasting U.S. manufactured goods outside
of transportation equipment fell in September in a possible sign
companies were holding back investments due to uncertainty over
The Treasury will sell $96 billion in new coupon-bearing
supply next week, including $32 billion in two-year notes on
Monday, $35 billion in five-year notes on Tuesday and $29
billion in seven-year notes on Wednesday.
- Budget, Tax & Economy