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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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From: redfish5/4/2005 9:05:13 AM
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Treasury says it is mulling issuing 30 year again. Slack demand?

Treasurys tumble after news 30-year bond may come back By Leslie Wines
NEW YORK (MarketWatch) - Long-term Treasury prices tumbled, sending yields higher, early Wednesday fter the U.S. Treasury confirmed market suspicions that it is considering reinstituting the 30-year bond. A decision will be announced on Aug. 3 at the August quarterly refunding. The Treasury stopped issuing the bond in October 2001 when the government was projecting surpluses that would eventually eliminate government debt. In recent trades the yield on the 10-year bond rose to 4.24% from 4.18% before the news. In late trade Tuesday the yield was 4.16%. The yield on the 30-year bond rose to 4.74% vs 4.5% late Tuesday.
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