Posted on 08/06/2010 8:23:55 AM PDT by AngieGal
Treasury prices rose Friday, pushing yields on 2-year notes to a record low, after a weak report on the labor market raised expectations that the Federal Reserve may take steps next week toward using monetary policy to support the faltering U.S. economy.
"Bond market bulls will use a soft number to justify arguments for the Fed to reinvest proceeds from mortgage holdings, and to reinforce the argument that the risk of a double-dip [recession] is rising," said strategist at RBS Securities.
(snip)
"It was a pathetic report," said Tom di Galoma, head of U.S. rates trading at Guggenheim Partners. "The revision on last month's payroll is troubling, and we believe the Fed will lean toward quantitative easing at next week's meeting."
(Excerpt) Read more at marketwatch.com ...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.