Treasuries Fall After Bernanke Says Fed Will Act to Avoid a Recession

Treasuries fell and bill yields rose as Federal Reserve Chairman Ben S. Bernanke indicated the central bank will do whatever it takes to keep the economy out of a recession.

Yields on three-month bills increased the most in more than two weeks on reduced demand for the safety of short-term government securities. A plan Treasury Secretary Henry Paulson is negotiating with the biggest banks to limit foreclosures may reduce concern over subprime mortgage losses, which has led U.S. debt to the best monthly returns in 12 years.

Rising gasoline prices, a housing slump and reduced access to credit seems to be just the beginning!!