Treasury Bonds Fall Again On Friday, Friday, June 08, 2007 3:49:41 PM

Treasury bonds fell again on Friday, adding to a 4-week-long selling spree. The drop also took treasuries to yet another multi-month low. Lingering concerns about inflation and interest rates sparked the slide, despite data showing a narrower trade deficit. Friday`s move sent the yield on the benchmark 10-year note toward 5.2%, though it backed off before hitting that level.

Bonds dropped in the first few minutes of trading, continuing a slide that began in mid-May. The early slide was spurred by comments from Michael Moskow, president of the Federal Reserve Bank of Chicago, who said that inflation remains the predominant risk to the economy. This echoed comments made earlier in the week by Fed Chairman Ben Bernanke.

The early sell-off took the 10-year yield to 5.181%, its highest level since early last July. By the mid-morning on Friday, bargain hunters had stepped into the fixed income market, causing the 10-year yield to back off. Eventually, the 10-year yield finished at 5.118%, up 1.9 basis points on the day.

Copyright © 2007 RTTNews.com. All Rights Reserved.