Friday, 03 August 2007

Treasury Two-Year Note Yields Drop to 18-Month Low on Jobs, Growth Outlook

(Bloomberg) -- Treasuries rose, pushing yields on
two-year notes to the lowest since January 2006, 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, climbed the most in a week as
traders boosted speculation the Federal Reserve will cut
interest rates. The gains accelerated after Bear Stearns Cos.,
the second-largest underwriter of mortgage bonds, had its
credit-rating outlook cut to negative by Standard & Poor's.


Read more at Bloomberg Bonds News

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