Treasury Prices Soar as Greenspan's Remarks Suggest to Investors That Rates Won't Be Raised
NEW YORK -- Treasurys prices soared yesterday after Federal Reserve Chairman Alan Greenspan, appearing before the Senate Banking Committee, said there are signs that economic growth is slowing to a more sustainable level.</br></br>Investors wagered that his remarks mean there is less likelihood that Fed policy makers -- who meet again on Aug. 22 -- will raise interest rates again this summer.</br></br>It was the best day for the bellwether 10-year Treasury in over a year, and the best performance for the 30-year bond since February.</br></br>The 10-year Treasury note's price jumped 1 3/32 points, or $10.94 per $1,000 face value, to 103 15/32. Its yield fell to 6.00% from 6.15% late Wednesday, as yields move inversely to prices.</br></br>The 30-year Treasury bond's price surged 1 16/32 points; its yield fell to 5.808% from 5.911% Wednesday.