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Bond Market Holds Gains After Fed Rate CutAired January 31, 2001 - 2:20 p.m. ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
NATALIE ALLEN, CNN ANCHOR: Let's go now to Chicago. Lisa Leiter is at the Chicago Board of Trade -- Lisa.
LISA LEITER, CNN CORRESPONDENT: Thank you. Well, treasury futures and cash treasuries are coming off their highs for the session. As Rhonda explained, this half a percentage point rate cut by Fed policy-makers was widely expected, and it's kind of one of those situations where it's buy on the river and sell on the news.
Although bonds are holding on to their gains for the session right now, we do have the 10-year note up 11 ticks. The yield there, this is a benchmark 10-year note, the yield on it 5.19 percent. And the 30-year bond up more than three-quarters of a point.
Certainly, they are holding on to their gains, but selling off just a bit, a little bit of selling after the Fed's announcement. This statement, of course, reiterating the same types of things they talked about when they made their surprise interest rate cut on January 3rd, eroding consumer confidence and energy costs cutting into consumer spending. And businesses spending cutting down as well with capital spending reduced as well.
Natalie, back to you.
ALLEN: Lisa Leiter, Chicago Board of Trades.
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