Tuesday, May 22, 2007

Treasury Two-Year Yield Trades Near Three-Month High on Economic Outlook

(Bloomberg) -- Treasury two-year yields traded near
a three-month high on expectations reports this week will show
the U.S. economy is gathering momentum.

Yields on the notes, the most sensitive to changes in
interest-rate expectations, have risen 8 basis points in the
past week, as traders reduced bets the Fed will cut interest
rates. U.S. economic growth will quicken, Federal Reserve Bank
of Chicago President Michael Moskow said yesterday.


Read more at Bloomberg Bonds News

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