Treasurys Rally On Rate Cut, Fed Statement
NEW YORK -- Treasurys, particularly short maturities, rallied after the Federal Reserve cut short-term interest rates by a quarter percentage point, as expected.</br></br>The two-year-note yield -- which moves inversely to its price -- fell to about 3.63%, the lowest level since the Treasury began issuing the maturity in 1972.</br></br>Because policy makers appeared to leave open the possibility of further easing, Treasurys could continue to rally, even after strong gains recently, analysts said.</br></br>"The Treasurys market will return to economic fundamentals and focus on falling business profits and the effects of global weakness," pushing yields downward, said Sadakichi Robbins, head of global fixed-income trading at Bank Julius Baer in New York.</br></br>At 4 p.m. Eastern time, the benchmark 10-year note was up 11/32 point, or $3.44 per $1,000 face value, at 101 4/32. Its yield fell to 4.856% from 4.900% late Monday.