Treasury bond yields decline

Even though Wall Street staged a late rally to end with the Dow Jones Industrial Average and the Nasdaq Composite just slightly lower on the session and with the S&P 500 closing 0.32 percent higher, Treasury bonds still maintained higher prices on the session.

Despite the day’s recovery, from as much as 300 points lower for the Dow, investors still worried about issues such as Countrywide Financial’s (NYSE: CFC) draw down of a line of credit to keep operating after they could not find money to borrow from more traditional sources.

Two-year Treasury bonds yielded 4.2 percent, down over 90 basis points since June, while ten-year issues were at a yield of 4.66 percent for a drop of 8 basis points on the session and a decline of 70 basis points since mid-June.

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