Summary Box: Treasurys rise with weak inflation

AP News
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Posted: Oct 29, 2010 5:55 PM
Summary Box: Treasurys rise with weak inflation

WEAK INFLATION: The government reported that a gauge of prices excluding food and energy rose just 0.8 percent, the second lowest reading since 1962.

AND THAT MEANS: The meager inflation reading was another sign to bond investors that the Fed is likely to try to spur the economy forward. The Fed is widely expected to announce a bond buying effort next week.

TREASURYS UP: The 30-year bond, the one most sensitive to inflation, jumped $1.06, pushing its yield down to 3.98 percent from 4.05 percent late Thursday.