bonds april 7 08

bonds april 7 08 - CNN: Bonds mixed after Fed minutes The...

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CNN: Bonds mixed after Fed minutes The central bank's concerns about inflation trigger a large selloff in long-term Treasurys while short-term bonds gain. Last Updated: April 8, 2008: 5:31 PM EDT NEW YORK (AP) -- Long-term Treasury prices tanked as short-term prices rose Tuesday after minutes from the Federal Reserve's last meeting revealed policymakers fretted over the prospects of a deep recession when cutting interest rates last month. Those concerns led some investors to speculate that the economy could be in for more trouble than recent placidity on Wall Street might have indicated. Further weakening in the economy could make room for the central bank to further reduce interest rates, a risk for longer-term government bonds. As a result, short-term Treasurys gained while long bonds fell. "It was interesting to see the majority seeing contraction in the first half and the risk of something more lasting and severe," said Josh Stiles, managing director at IDEAGlobal.com. "That's got the price action really favoring the short end of the Treasury market and more
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bonds april 7 08 - CNN: Bonds mixed after Fed minutes The...

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