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Treasurys Rally on Recession Worries

Thursday, February 21, 2008 5:39:56 PM
By LESLIE WINES

NEW YORK (AP) - Treasury prices advanced Thursday after new reports showed the economy should weaken further this year and that the decline of manufacturing in the Philadelphia area is accelerating.

The government bond market generally benefits from any sign of economic deterioration as Treasurys are perceived as being among the safest asset classes.

The Conference Board reported a fourth straight monthly decline for its leading economic indicators index, which projects the future state of the economy. The index fell 0.1 percent last month due to continuing weakness in the stock and housing markets.


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