Monday, June 4, 2007

U.S. Treasuries May Fall as Traders Reduce Bets on Fed Interest-Rate Cut

(Bloomberg) -- U.S. Treasuries may drop, pushing
yields to near the highest since August, as investors reduce
bets the Federal Reserve will cut interest rates this year.

Traders have lowered the odds of a quarter-percentage-point
cut in the Fed's benchmark lending rate by year-end to 28
percent from 31 percent a week ago, helping push bond yields
higher. Merrill Lynch & Co. yesterday said it expects the Fed to
keep rates on hold for the rest of the year, dropping its
earlier forecast of three rate reductions.


Read more at Bloomberg Bonds News

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