Treasuries Rise to the Highest Since 2005 in Flight to Quality

0

Print Friendly, PDF & Email

Treasuries rose to the highest since 2005 as concern over subprime mortgage losses led investors to sell stocks and seek the safety of short-term government debt.

Yields on two-year notes fell more than 10-year securities as traders increased bets that the Federal Reserve will cut interest rates next month to shore up credit markets. Barclays Plc wrote down $2.7 billion of securities, and Wells Fargo & Co. said it’s “not immune” to what it said is the worst housing market since the Great Depression.  [MORE]