bonds nov 07 - Bonds rally on signs of economic weakness -...

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The Internet home of: HOME NEWS MARKETS MY PORTFOLIO TECHNOLOGY JOBS PERSONAL FINANCE LUXURY Bonds rally on signs of economic weakness Traders move to low-risk instruments on reports of low consumer spending and industrial activity. November 1 2007: 1:01 PM EDT NEW YORK (AP) -- Treasury prices staged an unusually vigorous rally Thursday as consumer spending and manufacturing data left investors expecting a period of economic shakiness and seeking the safety of the government bond market. The massive buying spree produced the biggest drop in yields since early September, according to Joel Marver, a Treasury technical analyst with Thomson Financial. Prices and yields move in opposite directions. The Commerce Department said consumer spending - which accounts for two-thirds of the economy - rose 0.3 percent in the third quarter, below the 0.4 percent growth analysts expected. The report showed real disposable incomes and consumer spending slowing to their weakest levels since May. Meanwhile, the Institute for Supply Management said its nationwide factory activity survey slipped to 50.9 last month from 52.0. October marked the fourth straight month of slower growth, although all readings above 50 show expansion. Thursday's trading pattern was a reversal from Wednesday when
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This note was uploaded on 02/05/2011 for the course ACCT 301 taught by Professor Hasan during the Fall '09 term at George Mason.

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bonds nov 07 - Bonds rally on signs of economic weakness -...

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