Treasurys Rise on CPI, Bear Bailout

The Fed has cut the overnight fed funds rate from 5.25 percent before the current credit crisis to its present level of 3 percent. Bond market investors are expected another reduction of about 0.50 percentage point next week.

Other data showed the weakening economy taking a toll on consumers. Sentiment this month slipped to a 16-year low, according to a University of Michigan/Reuters survey. The consumer sentiment index dropped to 70.5 in March from 70.8 in February.