Bonds Hit on U.S. Spending Concerns

Treasuries fell on anticipated government spending for clean-up costs in New York City and military efforts for Operation Infinite Justice

An ugly day in the U.S. capital markets Thursday culminated with stocks testing fresh lows and bonds shedding nearly a point. Losses at the long-end were compounded following key testimony on Capital Hill, eventually dragging the short-end under water, though the curve held its steeper profile. Stocks continued to sink under their own weight, though the long-end of the Treasury curve was laboring under the burden of mounting fiscal concerns related to the terrorism aftershocks.

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