(Reuters) - NEW YORK, July 16 - U.S. Treasury debt prices
rose on Monday on worries that the deterioration in the
subprime mortgage sector will spill over to the broader market
and prompt the Federal Reserve to trim interest rates.
The benchmark ABX index, used by investors to hedge
subprime mortgage risks, sank to a fresh intraday low. This led
investors skittish about securities backed by subprime loans --
made to homeowners with blemished credit histories -- to buy
less risky U.S. government bonds.
Read more at Reuters.com Bonds News
rose on Monday on worries that the deterioration in the
subprime mortgage sector will spill over to the broader market
and prompt the Federal Reserve to trim interest rates.
The benchmark ABX index, used by investors to hedge
subprime mortgage risks, sank to a fresh intraday low. This led
investors skittish about securities backed by subprime loans --
made to homeowners with blemished credit histories -- to buy
less risky U.S. government bonds.
Read more at Reuters.com Bonds News
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