Yield Indexes Rise Again on Inflation Concerns and Leftover Supply

Chang, Helen
February 2005
Bond Buyer;2/25/2005, Vol. 351 Issue 32078, p34
Trade Publication
The article reports that the Bond Buyer's yield indexes rose for the second consecutive week as inflation concerns and last week's leftover supply weighed down prices. Yields rose by as much as five to eight basis points in response to the PPI report. Bond prices also came under pressure following yesterday's $24 billion two-year note Treasury sale, which drew little interest from foreign investors. Inflation eats into the value of bonds' future interest and principal payments. Finally, the weekly average yield to maturity raised five basis points to 4.77%.


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