Monday, May 21, 2007

U.S. Treasuries Gain as Yields Near Three-Month High Attract Investors

(Bloomberg) -- U.S. 10-year notes rose as yields near
their highest in three months attracted investors who are betting
on slower economic growth and lower interest rates.

Treasuries fell the most since January last week. Ten-year
yields, which move in the opposite direction to prices, rose to
4.81 percent last week, approaching the 2007 high of 4.90 percent
reached on Jan. 26. Inflation expectations, as measured by the gap
between two-year nominal and inflation-linked bonds, fell to 260
basis points from 281 basis points at the start of this month.


Read more at Bloomberg Bonds News

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