Summary Box: Interest rates drop; Expections rise that the Fed will step into the market
By APTuesday, September 14, 2010
Summary Box: Treasury yields are falling
GOOD NEWS: Retail sales rose 0.4 percent in August, better than expectations. That would normally send bond prices down, but not Tuesday.
TREASURYS UP: Treasurys gained ground. The benchmark 10-year note climbed, sending its yield to 2.67 percent. The 30-year yield fell to 3.79 percent. Higher bond prices lower yields.
BUT WHY? Explanations abound for the Treasury’s market’s strength. The most notable: traders betting that the Federal Reserve will buy more Treasurys to lower long-term rates even further.
YOUR VIEW POINT