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Treasuries Decline on Reduced Rate Cut Hopes



26 April 2008 @ 06:24 am EST

Treasuries fell on Friday as bets grew that the Federal Reserve will end it string or rate cuts at its next policy meeting.

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Futures traders on the Chicago Board of trade are expecting the Fed will keep its benchmark interbank lending rate to remain unchanged or post a slight drop. There is a 26 percent chance the Fed will keep rates the same, compared to a week earlier when only 2 percent expected the rate to stay constant. The remaining bets are for a quarter point cut.

Two year treasuries fell 2/32 in price to yield 2.431 percent in late trading on Friday. Ten year treasuries dropped 10/32 in price to yield 3.874 percent.

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