Wednesday, May 9, 2007

TREASURIES-Bonds fall after Fed cites inflation worry

(Reuters) - NEW YORK, May 9 - U.S. government bond prices dropped on Wednesday after the Federal Reserve held interest rates steady and signaled to investors its main concern was that inflation would fail to moderate.

The Fed held the benchmark federal funds rate target unchanged at 5.25 percent as expected. In its accompanying statement, the Federal Open Market Committee said core inflation remained somewhat elevated.


Read more at Reuters.com Bonds News

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