Treasuries Rally on Flight to Safety
MARKETSCOPE: Bonds surged on flight to safety as U.S. stocks drifted at lower levels and European and Asian stocks skidded on worries about a global economic slowdown. The Fed's quarterly outlook report suggested the U.S. economy will be sluggish for the next 3 years. Many betting that will force the Fed to cut rates again soon. There was little reaction to reports Jobless Claims fell, Leading Economic Indicators eased and the Michigan Sentiment Index edged up from previous reading. The 2-year notes rose 11/32 to 101-06/32 for yield of 3.010%, 10-year notes rose 22/32 to 102 for yield of 4.010% and the 30-year bond rose 21/32 to 108-27/32 for yield of 4.461%. Gold futures rose. Crude oil futures seesawing on inventory data after briefly crossing $99.