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Pastimes : Home on the range where the buffalo roam -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (10709)	5/19/2003 10:25:52 PM
From: sandintoes	Read Replies (1) \| Respond to of 13815

U.S. Treasuries Rise; Fed May Bolster Slower Inflation View May 20 (Bloomberg) -- U.S. Treasuries rose on analysts' expectations slower growth and inflation will spur the Federal Reserve to lower interest rates in coming months. The 3 5/8 percent note due in May 2013 rose 5/32, or $1.56 cents per $1,000 face amount, to 101 10/32 at 10:25 a.m. in Tokyo from late in New York yesterday. Its yield fell 2 basis points to 3.47 percent. A basis point is 0.01 percentage point. Fed chief Alan Greenspan, who testifies in Congress before the Joint Economic Committee tomorrow, last month said a further drop in prices might impede investment spending by businesses. The Fed earlier this month said it's concerned about a slowdown in inflation, boosting expectations it may lower the target rate on overnight loans from a 41-year low of 1.25 percent. ``What will drive yields lower is the disinflation that is likely to persist in the U.S.,'' said Peter Clay, a currency and bond strategist at ABN Amro Australia Ltd. in Sydney. ``That suggests the Fed is likely to cut rates again, and that's possibly going to be 50 basis points. That sort of dynamic is very supportive for the Treasury market.'' ``The 10-year can trade down toward 3.25 percent,'' by the end of the month, Clay said.