Treasuries Trade Mixed
S&P MARKETSCOPE: The 30-year Treasury bonds were off 01/32 to 103-22/32 for yield of 4.282% at 6:01 am EDT, the 10-year notes were up 02/32 to 101-07/32 for yield of 3.855% and the 2-year note was up 01/32 to 100-19/32 for yield of 1.696% as stocks indicated to open lower. Many betting Fed will cut rates at next week's meeting. Bernanke yesterday conditionally endorsed a 2nd economic stimulus plan. Encouraged by signs global lending beginning to be unfrozen. France to inject $14 billion to six of its top banks. Meanwhile, Lehman Brothers' credit default swaps worth hundreds of billions come due today. The cash settlement turns out to be about 9 cents on the dollar. CNBC Fast Money writers say "that means if you sold insurance on Lehman default as of Tuesday you own 91 cents for every dollar of risk assumed." The NYT yesterday reported New York State and federal prosecutors are investigating trading in credit-default swaps, the insurance like securities that have come under close scrutiny for their role in the financial crisis. Minneapolis Fed President Gary Stern speaks tonight in Escanaba, Michigan.
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