(Reuters) - NEW YORK, July 11 - U.S. government bond prices
dropped on Wednesday as investors bought stocks on the belief
that there may have been an overreaction to worries about the
extent of the subprime mortgage market's troubles.
However, bond investors were alert for any repeat of
Tuesday's stock market sell-off that triggered flows into the
safety of Treasuries and lifted the 10-year note to its
strongest daily performance since Feb. 27. On Tuesday, the Dow
Jones industrial average fell 148 points after Standard
& Poor's and Moody's began to cut credit ratings on about $17
billion of mortgage-related debt. The Standard & Poor's 500
index ended Tuesday's session down 1.42 percent and the
Nasdaq composite index fell 1.16 percent.
Read more at Reuters.com Bonds News
dropped on Wednesday as investors bought stocks on the belief
that there may have been an overreaction to worries about the
extent of the subprime mortgage market's troubles.
However, bond investors were alert for any repeat of
Tuesday's stock market sell-off that triggered flows into the
safety of Treasuries and lifted the 10-year note to its
strongest daily performance since Feb. 27. On Tuesday, the Dow
Jones industrial average fell 148 points after Standard
& Poor's and Moody's began to cut credit ratings on about $17
billion of mortgage-related debt. The Standard & Poor's 500
index ended Tuesday's session down 1.42 percent and the
Nasdaq composite index fell 1.16 percent.
Read more at Reuters.com Bonds News
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