Gary Siegel

While inflation should be moderate in the near-term, the length and magnitude of monetary policy accommodation mean risks for inflation in the medium and long term, according to Federal Reserve Bank of Philadelphia President and Chief Executive Officer Charles I. Plosser.

While monetary policy has become more accommodative than it was six months ago, GDP should grow faster than potential for the next two years, Federal Reserve Bank of St. Louis President James Bullard said Thursday.

Keeping interest rates near zero for too long may result in "financial imbalances and instability" that increase rather than decrease unemployment, according to Federal Reserve Bank of Kansas City President and Chief Executive Officer Esther L. George.

The Treasury Department Thursday auctioned $13 billion of 29-year 10-month bonds with a 2 3/4% coupon at a 3.070% high yield, a price of 93.772210.

The Treasury Department said Thursday it will auction $32 billion 91-day bills and $28 billion 182-day discount bills Monday.

The European Central Bank announced its Governing Council held interest rates at its latest monetary policy meeting Thursday.

The Treasury Department auctioned $21 billion of 9-year 10-month notes with a 1 5/8% coupon at a 1.863% high yield, a price of 97.869127.

The Treasury Department Tuesday auctioned $32 billion of three-year notes with a 3/8% coupon at a 0.385% yield, a price of 99.970201.

The Treasury Department Tuesday auctioned $40 billion of four-week bills at a 0.055% high yield, a price of 99.995722.

The Treasury Department Tuesday auctioned $25 billion of 364-day bills at a 0.140% high yield, a price of 99.858444.

Newly issued Treasury securities held in stripped form increased about $601 million in December to a total of $193.868 billion, the Bureau of the Public Debt reported Monday.

Tender rates for the Treasury Department's latest 91-day and 182-day discount bills were lower, as the three-months incurred a 0.065% high rate, down from 0.075% the prior week, and the six-months incurred a 0.105% high rate, off from 0.120% the week before.

The Treasury Department said Monday it will sell $40 billion of four-week discount bills Tuesday.

The Conference Board's Employment Trends Index climbed to 109.02 in December from an upwardly revised 108.19 in November.

The U.S. services sector expanded at a slightly faster pace in December as the non-manufacturing business activity composite index was 56.1 in the month, compared to 54.7 in November, on a seasonally adjusted basis, the Institute for Supply Management reported Friday.

U.S. inflationary pressures were slightly higher in December, as the U.S. future inflation gauge climbed to 104.0 from an upwardly revised 102.6 in November, originally reported as 102.5, according to data released Friday morning by the Economic Cycle Research Institute.

The Treasury Department said it will auction $13 billion 29-year, 10-month bonds on Jan. 10.

The Treasury Department said it will auction $21 billion 9-year, 10-month notes on Jan. 9.

The Treasury Department said it will auction $32 billion three-year notes on Jan. 8.

The Treasury Department said Thursday it will auction $32 billion 91-day bills and $28 billion 182-day discount bills Monday.