Treasury Prices Still Rising
MARKETSCOPE: Treasury prices rose on Friday, as the market continued making bets on interest rates during 2006.
The 10-year note rose 05/32 to 100-15/32 for a yield of 4.44%, while the 30-year bond climbed 11/32 to 110-24/32 for a yield of 4.65%.
Markets shrugged off news that the third quarter current account deficit fell to $195.8 billion from $197.8 billion in the second quarter, which was revised from the $195.7 billion originally reported.
Investors continued making their bets about inflation and interest rates. The Federal Open Market Committee on Tuesday raised rates for the 13 time since 2004, in an effort to control inflation by making debt more expensive. The rate now stands at 4.25%. The language in the monetary policy statement also changed on Tuesday, fueling speculation about an end to the Fed's recent credit tightening cycle.