Custom Search

Friday, July 20, 2007

Treasury 10-Year Yield Falls Below 5 Percent on Credit Concern

" Treasuries rose, pushing the benchmark 10-year note's yield below 5 percent, on speculation rising subprime mortgage defaults will lead to higher interest rates for private borrowers and curb economic growth.

Ten-year notes strengthened the most in more than a week as Standard & Poor's cut ratings on European collateralized debt obligations and gauges of investor appetite for corporate bonds and loans fell.

"There's a sense that crises in financial markets would force central banks' hands,'' said Tom McGlade, who trades 30- year Treasuries in Greenwich, Connecticut, at RBS Greenwich Capital "That's part of why the market rallies in a fear-trade environment.'' The firm is one of the 21 primary U.S. government securities dealers that underwrite Treasury auctions. "

Source: Treasury 10-Year Yield Falls Below 5 Percent on Credit Concern (http://www.bloomberg.com/apps/news?pid=20601087&sid=alYI7EFkBNcs&refer=home)