Tuesday, June 5, 2007

Treasury 10-Year Yield Touches Nine-Month High After Services Gauge Gains

(Bloomberg) -- Treasuries fell, and the benchmark 10-
year note's yield touched a nine-month high, as an unexpected
increase in a gauge of service industries prompted traders to
undo bets that the Federal Reserve will cut interest rates.

Traders who a month ago were convinced the Fed would lower
its target for the overnight lending rate between banks at least
once by year-end now see almost no chance of that happening,
interest-rate futures yields show. The increase in the Institute
for Supply Management's index of non-manufacturing businesses
follows stronger-than-forecast reports on employment and business
activity in the past week.


Read more at Bloomberg Bonds News

No comments: