Fed Speculation Lifts Treasurys
Author: Min Zeng</br></br>NEW YORK--The 30-year Treasury bond rallied Wednesday, leading a rebound in the bond market on speculation that the Federal Reserve will step up government-debt buying to support the economy.</br></br>The benchmark 10-year note erased earlier losses to trade flat. The 30-year bond gained for a third-straight session.</br></br>"I still believe that the continued evidence of a lack of inflation coupled with a Fed pledge to buy longer dated assets give investors a window of investment opportunity that is rarely available and with so much clarity," said Kevin Giddis, president of fixed income capital markets at Morgan Keegan Inc. in Memphis, Tenn.</br></br>As of 4 p.m. EDT, the price of the benchmark 10-year note was flat to yield 2.481% and the 30-year bond was 12/32 higher to yield 3.893%. The two-year note was 1/32 higher to yield 0.351%. Bond prices move inversely to yields.