MW: Treasurys erase small gain as fiscal cliff looms
By Deborah Levine
SAN FRANCISCO (MarketWatch) -- Treasury prices erased an earlier gain on Monday in very thin Christmas Eve trading, with the major point of discussion remaining U.S. lawmakers' inability to negotiate a way to avert the fiscal cliff -- a steep falloff in economic activity being triggered by the expiration of several tax breaks and onset of federal spending cuts slated at year-end. "Nothing major will be decided before January," said Andrew Brenner, head of international fixed income at National Alliance Securities. "There is about a 10% chance that something gets done before year-end." Yields on 10-year notes 10_YEAR -0.06% , which move inversely to prices, were little changed at 1.77%. U.S. stocks close early, at 1 p.m. Eastern, but bond markets don't have a recommended early close. Both will be shut Tuesday for Christmas.
