Summary Box: Treasury prices rise as traders bet Federal Reserve will increase bond buying
By APWednesday, September 22, 2010
Summary Box: Treasury prices climb for 2nd day
BETTING ON THE FED: Investors on Wednesday increasingly bet the Federal Reserve would expand its purchases of Treasury bonds in the coming months to further stimulate the economy.
FALLING YIELDS: With Treasury prices rising, yields continued to plunge. The yield on the 10-year note is down to 2.52 percent from 2.58 percent Wednesday.
EFFECT ON RATES: Interest rates should fall in line with Treasury yields. The 10-year note’s yield is often used as a benchmark for setting rates on mortgages and other consumer loans.
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