Treasurys are Mixed as the 30-Year Bond Rises on Expectation It Won't Be Sold After This Year
             By Michael S. Derby and Steven Vames
             Within the past few weeks Treasurys have been fluctuating in price and value. Some securities are up while others are down. This is because of the insecurity of what it is to become of the 30-year bond offered by the Treasury Department. In the investment world there have been rumblings that after this year the 30-year Bond will no longer be sold. If this happens, the last year that the United States will pay for this bond will be the year 2031.
             These expectations have caused the 30-Year bond to do the complete opposite of what is happening with all other Treasurys this past week. Last week, the 10-Year note was down by 2/32 points, which is a 62-cent difference for each $1000 dollars. While on the other hand the 30-Year Bond rose by 11/32 points in comparison.
             The reason that some investor feel that these bonds were not going to be sold is because of a buyback the government is going thorough at that moment. They are worried because, instead of letting the bonds mature, they are choosing to purchase outstanding bonds.
             Some sales of bonds are now trying to be done through auctions and things of that nature. This type of selling almost completely eliminates the small banks, and will only leave dealers and foreign central banks to purchase bonds during these auctions
             I found that the whole issue of purchasing by the government surprising. I was under the impression that they would want to wait as long as possible to have to pay off everybody.
             I also thought that it was a bit strange that the price was rising. I would have thought that if there were talkings of a bond not being issued any more after that particular year was over, then the price of the bond would decrease instead of increase. The latter is what happened in this situation.
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