Treasury Prices Surge

Treasury Prices Surge

S&P MARKETSCOPE: Bonds sharply higher in flight to safety from skidding global stock markets. The 30-year Treasury bonds were up 1-14/32 to 106-13/32 for yield of 4.126% at 7:02 am EDT, the 10-year notes were up 20/32 to 102-26/32 for yield of 3.660% and the 2-year note was up 06/32 to 100-29/32 for yield of 1.528%. Both Treasury Sec. Paulson and Minneapolis Fed President Gary Stern warned the U.S. faces a potentially lengthy economic slowdown. But Paulson said the credit freeze appears to be thawing due to various central bank and government steps. Stern said the current U.S. economic downturn could be worse than the 1990-91 recession, with growth restrained for as long as one to three years. Stern said the government's array of costly measures is key to limiting contagion from the worst financial meltdown in decades to the broader U.S. economy.

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