Friday, 03 August 2007

Treasuries Climb as Jobs, Services Data Add to Bets on Economic Slowdown

(Bloomberg) -- Treasuries rose after weaker-than-
forecast reports on jobs and services reinforced bets that
housing market weakness will lead to a broad economic slowdown.

Two-year notes, more sensitive than longer-maturity debt to
changes in monetary policy, rose the most in a week as traders
increased speculation that the Federal Reserve will cut interest
rates this year. The gains accelerated after Bear Stearns Cos.,
the second-largest underwriter of mortgage-backed bonds, had its
credit-rating outlook cut to negative by Standard & Poor's.


Read more at Bloomberg Bonds News

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