Bonds Higher

Treasuries rose Thursday on a flight to safety following corporate debt rating downgrades

Treasuries rose Thursday on a flight to safety following corporate debt rating downgrades, according to S&P's MarketScope. Standard & Poor's rating service downgraded GM and Ford debt ratings to junk status. The 10-year yield touched a near three-month low of 4.135% intraday. Long-dated treasuries were lower most of the day, as traders squared positions ahead of the April labor report tomorrow. Thursday's economic data -- jobless claim and labor costs -- were consistent with expectations, according to Informa, and market reaction was limited. Greenspan said the decline in long-term inflation expectations is a factor in maintaining low long-term rates and that a long bond issuance would not correct the "conundrum", according to Informa.

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