U.S. Benchmark Treasury Yield Holds Below 5 Percent on Mortgage Concerns

(Bloomberg) -- U.S. 10-year Treasury yields held
near the lowest in two months as investors sought the relative
safety of government debt on concern that losses on subprime
loans in the U.S. will hurt the broader economy.

Benchmark yields stayed below 5 percent for a second day
before a report this week that's expected to show home sales
fell to the lowest in four years in June. Federal Reserve
Chairman Ben S. Bernanke last week said inflation will recede
and housing market weakness may slow the economy.


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Treasury 10-Year Note Yield Falls Below 5 Percent on Subprime Loan Crisis

(Bloomberg) -- Treasuries rose, pushing the
benchmark 10-year note's yield below 5 percent, on speculation
rising subprime mortgage defaults will lead to higher lending
costs for private borrowers and curb economic growth.

Ten-year notes headed for their second straight weekly gain
as gauges of investor appetite for credit risk fell. Federal
Reserve Chairman Ben S. Bernanke told Congress this week that
conditions in the subprime mortgage market ``have deteriorated
significantly.''


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Treasuries Are Little Changed After Bear Stearns Tells of Subprime Losses

(Bloomberg) -- Treasuries were little changed
after Bear Stearns Cos. told investors in two funds they will
get little if any money back because of losses on securities
used to bet on subprime mortgages.

U.S. government debt pared gains before Federal Reserve
Chairman Ben S. Bernanke testifies before Congress today on the
state of the economy and interest-rate policy and the Labor
Department delivers its report on consumer inflation.


Read more at Bloomberg Bonds News