US Treasuries firm on hint of softer growth ahead

[ckramer]

U.S. Treasury debt prices rose on Friday after a report on May durable goods orders heightened fears of slower economic growth.

In addition, a flight-to-safety bid has developed in recent days as equities prices have tumbled. The Dow Jones industrial average fell on Friday to its lowest level in over a month.

However, the gains in Treasuries were pared by end-of-week book-squaring as the day wore on.

The benchmark 10-year Treasury note (US10YT=RR: Quote, Profile, Research) was up 7/32 in price for a yield of 3.93 percent, down from 3.95 percent late on Thursday but up from an early low of 3.91 percent, the lowest since June 8. Resistance is expected to a move below 3.90 percent.

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Do I hear the sound of bubble popping?

[Roland99]

1. It'll be temporary. IBM will see positive growth from new outsourcing.

[indepat]

2. A bubble popping and maybe a precursor to the global economic

collapse Julian Robertson foresees down the road.

http://www.silverbearcafe.com/private/economiccollapse.html

As for me, I'm a cockeyed optimist and don't think the impending global economic collapse, precipitated by Repuke fiscal and tax policies and ensuing massive budget deficits et al going back to the early Gipper days, will be quite as bad as Mr. Robertson envisions.

[bahrbearian]

3. `Never Been Wrong' Robertson.

He has predicted every economic cycle, every,,, Can't put much faith in what he says.