Saturday, June 23, 2007

U.S. Two-Year Notes Gain First Time Since April on Hedge Funds

(Bloomberg) -- Treasury two-year notes rose
for the first time since April as investors sought refuge
from possible hedge fund losses.

Two-year yields fell more than 10-year yields this
week, increasing the yield premium of the longer-term debt
to the most since October 2005, as Bear Stearns Cos.
offered to provide $3.2 billion in loans to bail out one of
its money-losing hedge funds. The Federal Reserve is
forecast by economists to hold its benchmark lending rate
steady at its meeting next week.


Read more at Bloomberg Bonds News

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