Long-Short Guy

Bonds Have Moved: Are Spreads Next?

Also interesting:
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<b>U.S. notes look primed to extend price gains on housing data</b>

Reports due out this week are forecast by economists to show that sales of new and existing U.S. homes declined last month, and that news may extend a two-week gain in prices of U.S. Treasury notes, the biggest rise in more than three years.

...Last week, prices of Treasury securities rose the most in more than four months on increased speculation that losses in notes backed by subprime mortgage loans might curb U.S. growth. The Federal Reserve chairman, Ben Bernanke, testified before the U.S. Congress that inflation would recede and that housing market weakness could slow the economy.
</blockquote>

Source:
iht.com/articles/2007/...

Bonds Have Moved: Are Spreads Next?

Another ingredient:
<blockquote>
<b>Treasuries Attract Pension Funds Overflowing With Stock Gains</b>

Treasuries are getting an unexpected boost from pension funds controlling more than $14 trillion.

Fund managers for companies including General Motors Corp. and Alcatel-Lucent are shifting away from stocks to prepare for accounting changes requiring them to more fully disclose the value of their holdings. Bonds are gaining favor as funds seek to avoid wider swings in prices that may accompany equities as the new rules take effect, possibly later this year.

The switch couldn't come at a better time for the $4.4 trillion market for U.S. government bonds, which hasn't returned more than 3.5 percent a year since 2002...
</blockquote>

Source:
www.bloomberg.com/apps...;sid=aCoF9B9h8rxs