Treasury two-year notes rose for the first time since April as investors sought refuge from possible hedge fund losses.

Two-year yields fell more than 10-year yields this week, increasing the yield premium of the longer-term debt to the most since October 2005, as Bear Stearns Cos. offered to provide $3.2 billion in loans to bail out one of its money-losing hedge funds. The Federal Reserve is forecast by economists to hold its benchmark lending rate steady at its meeting next week.

Benchmark 10-year notes had their first weekly gain since May 4, pushing yields down 4 basis points to 5.13 percent. The spread between 10- and two-year notes reached 23 basis points yesterday.

Looks like we caught a breather this week!! The FED meets next week....

Here's to hoping that they won't raise overnight lending!!!

:-)

 

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Mortgage Company: Kris Krajecki - American Mortgage Werks - Huntley, IL
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