Demand for the relative safety of U.S. notes and bonds waned on speculation that further cuts in borrowing costs by the Federal Reserve and an economic stimulus package will avert a recession.
Losses in Treasuries were limited as a report showed the nation's housing slump deepened. Purchases of existing homes fell 2.2 percent to an annual rate of 4.89 million, the National Association of Realtors said today. For all of 2007, sales of single-family homes declined 13 percent, the most since 1982, and prices dropped for the first time in at least four decades.
I still predict a 1/2 point rate next week.