Wednesday, June 20, 2007

Treasuries Drop on Speculation Companies Issuing Debt Will Sell U.S. Notes

(Bloomberg) -- Treasuries fell for the first time
in four days on speculation corporations planning to issue debt
will sell U.S. government notes in advance.

The companies will establish so-called interest rate hedges
by selling Treasuries to protect against increased borrowing
costs stemming from higher yields. Traders who use charts to
determine an asset price's direction say benchmark 10-year note
yields may be due for a rebound after falling over the past week
from the highest since 2002.


Read more at Bloomberg Bonds News

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