Treasuries Hang onto Gains After Rate Cut

Long bond gets boost from Treasury's hint that the 30-year issue may be eliminated

The Federal Open Market Committee "just" met expectations Wednesday with 50-basis point cuts in both the Fed funds and the banks' discount rate and continuity of the easing bias Wednesday. This was a recipe the bond market liked, but the decision fell short of the 75-basis point cut that equities had been praying for -- a cut that was already partly priced into the market.

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