US Economy Slows Further

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BBC

The slowdown in the US economy is continuing, as weakness in manufacturing is spreading into other areas, according to the Federal Reserve.

Economic growth eased to just 0.7% annually in the April-June quarter, the poorest performance in eight years, the Fed said.

The news hammered US stock markets, which fell sharply, wiping out tentative earlier gains.

But bonds bounced, as investors scrambled to put their money into more stable markets. _________________

US 30-year Treasuries soared more than a full percentage point, pushing their interest yields to four-month lows.

Yields on two-year notes, the most sensitive to interest-rate expectations, tumbled to their lowest level since October 1993, the last time the Fed was battling against recession fears.

-- Rachel Gibson (rgibson@hotmail.com), August 08, 2001

Answers

It's about time. I have been wondering when long term interest rates were going to follow Greenspans lead, and start dropping. They always do.

-- Billiver (billiver@aol.com), August 09, 2001.

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