Gary Siegel

Economic growth “remains disappointingly slow,” with continued “significant downside risks,” and if growth slows greatly, “more policy accommodation could be advisable,” Federal Reserve Bank of Boston president and chief executive Eric S. Rosengren said Tuesday.

The Treasury Department Tuesday auctioned $35 billion of two-year notes with a 1/4% coupon at a 0.340% yield, a price of 99.821248.

Despite recent improvement economic growth “remains disappointingly slow,” with continued “significant downside risks” and should growth slow greatly, “more policy accommodation could be advisable,” Federal Reserve Bank of Boston President and Chief Executive Officer Eric S. Rosengren said Tuesday, adding monetary policy should remain accommodative until the Fed’s dual mandate can be met in the near future.

The Treasury Department Tuesday auctioned $35 billion of four-week bills at a 0.065% high yield, a price of 99.994944.

Service sector activity “ strengthened in March,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.

“Manufacturing activity in the central Atlantic region expanded in March for the fourth straight month, but at a more temperate pace than a month ago,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “All broad indicators — including shipments, new orders, and employment — continued to grow but at a rate below February's pace. Most other indicators also suggested moderate activity. District contacts reported capacity utilization grew more slowly, while backlogs held steady. Likewise, delivery times and finished goods inventories grew at a modestly slower rate.”

The consumer confidence index dipped to 70.2 in March from an upwardly revised 71.6 last month, The Conference Board reported Tuesday.

Texas factory activity, as measured by the production index, continued to expand at roughly the same pace in March as in February, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas and released Monday.

Pending home sales slipped 0.5% to an index reading of 96.5 in February after an unrevised 2.0% increase to 97.0 in January, according to a report released Monday by the National Association of Realtors.

Although the jobs market has improved recently, it remains “far from normal,” and there are no guarantees that the pace of improvement will be sustained, so monetary policy should remain accommodative, Federal Reserve Board chairman Ben Bernanke told the National Association of Business Economists on Monday, according to a text released by the Fed.

Tender rates for the Treasury Department’s latest 91-day and 182-day discount bills were mixed, as the three-months incurred a 0.085% high rate, down from 0.095% the prior week, and the six-months incurred a 0.150% high rate, unchanged from 0.150% the week before.

The Treasury Department said Monday it will sell $35 billion of four-week discount bills Tuesday.

Texas factory activity, as measured by the production index, continued to expand, atroughly the same pace in March as in February, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.

Pending home sales slipped 0.5% to an index reading of 96.5 in February after an unrevised 2.0% increase to 97.0 in January, according to a report released Monday by the National Association of Realtors.

The Chicago Fed National Activity Index for February fell to negative 0.09 from a revised positive 0.33 reading in January, while the three-month moving average (CFNAI-MA3) improved to 0.30 in February from a revised 0.22 in January, the Federal Reserve Bank of Chicago reported Monday.

Although the jobs market has improved recently, it remains “far from normal,” and there are no guarantees that the pace of improvement will be sustained, Federal Reserve Board Chairman Ben Bernanke told the National Association of Business Economists on Monday.

The Treasury Department sold $15 billion of inflation-indexed nine-year, 10-month Treasury Inflation-Protected Securities at a negative 0.089% yield, an adjusted price of 102.226025, with a 1/8% coupon. The bid-to-cover ratio was 2.81. Tenders at the market-clearing yield were allotted 42.40%.

The composite index of leading economic indicators rose 0.7% in February following a revised 0.2% gain in January originally reported as a 0.4% increase, the Conference Board reported Thursday.

The Treasury Department sold $15 billion of inflation-indexed 9-year 10-month TIPs at a negative 0.089% yield, an adjusted price of 102.226025, with a 1/8% coupon.

The Treasury Department said it will auction $29 billion seven-year notes on Thursday, March 29.