Tuesday, June 26, 2007

Treasuries Little Changed After Note Auction, Rebound in Corporate Debt

(Bloomberg) -- Treasuries were little changed, with
yields on two-year notes near their lowest this month, as the
government sold $18 billion of the securities in an auction and
the perceived risk of owning corporate bonds fell.

Two-year notes in particular had benefited from concern a
weak housing market would lead to losses for investors in
mortgage-backed securities. All Treasuries have yields lower than
the Federal Reserve's benchmark lending rate, which the central
bank is expected to leave at 5.25 percent at a two-day meeting
that starts tomorrow.


Read more at Bloomberg Bonds News

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