Wednesday, May 30, 2007

TREASURIES-Bond prices rise as Asian stocks tumble

(Reuters) - "This appears to be a bit of a flight-to-quality bid based
on the Chinese announcement and the stamp duty that has been
imposed. We see a bit of an overreaction in the European stock
and bond markets, which will probably spill over into the U.S.
markets," said Walter Gerasimowicz, chief executive of Meditron
Asset Management, a wealth-management firm in New York.




The rise in bond prices follows a three-week selloff in
which investors have plowed money into corporate bonds, stocks
and other riskier assets in search of higher returns. Fading
expectations of an interest-rate cut from the Federal Reserve
this year have also pressured Treasuries.


Read more at Reuters.com Bonds News

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