U.S. 10-Year Note Has Longest Slump This Year on Rate Outlook

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Tick ...

Dec. 2 (Bloomberg) -- The benchmark 10-year U.S. Treasury note fell for the seventh straight day in New York trading, its longest slump this year, on speculation the Federal Reserve will highlight a growing risk of inflation.

Signs of faster gains in consumer prices would be give the Fed a reason to accelerate the pace of interest-rate increases, some strategists said. ``A growing number'' of central bankers believe inflation risks are rising, the Wall Street Journal said, citing unidentified officials.

``Some of our customers are getting behind the idea that the Fed will change the wording'' of its statement on interest rates when it meets on Dec. 14, said James Collins, a futures analyst at Citigroup Global Markets in Chicago. ``If they change the wording in a way to indicate that they might accelerate the pace of tightening, the market is not fully prepared for that.''

The 4 1/4 percent note due in November 2014 dropped 3/16, or $1.88 per $1,000 face amount, to 98 29/32 at 11:43 a.m. in New York, according to bond broker Cantor Fitzgerald LP. The yield increased 2 basis points, or 0.02 percentage point, to 4.39 percent, the highest since early August. The current two-year note, more sensitive to changes in monetary policy, dropped 1/32, as its yield gained almost 3 basis points to 3.03 percent.

Bloomberg

[joeybee12]

1. You know, it's not just Iraq, but EVERYTHING these bozos are doing

is wrong--there is not ONE functioning brain cell in this mis-administration.