Tuesday, July 10, 2007

Treasuries Rise Most in Week as S&P Says It May Cut Subprime Bond Ratings

(Bloomberg) -- Treasuries rose the most in more
than a week after Standard & Poor's said it may cut credit
ratings on $12 billion of bonds backed by subprime mortgages,
raising concern housing weakness may slow the U.S. economy.

Credit-default swaps, contracts used to speculate on a
company's ability to repay debts, rose to the highest premium
since March in the U.S. and Europe on concern over declining
earnings and speculation over subprime mortgage losses.


Read more at Bloomberg Bonds News

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