Treasury Prices Higher
S&P MARKETSCOPE (06/29/07 09:10 am EDT): The 10-year Treasury notes are up 11/32 to 95-21/32 for yield of 5.064%, and 30-year bonds are up 21/32 at 93-26/32 for yield of 5.158% after the release of relatively tame readings on May personal consumption expenditures (PCE), a key measure of inflation... According to Action Economics, the dip in core PCE prices below 2.0% year over year knocked Treasury yields briefly lower, effectively within the Fed's unofficial 1%-2% comfort zone, though there hasn't been much follow-through enthusiasm from the markets... After the Fed essentially said yesterday that it will continue to target inflation risks ahead, the bond market's gratitude has been limited... Still more to come, with the Chicago PMI, construction spending and U. Michigan sentiment later.
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