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NEW YORK (AP) - Treasury prices plunged Thursday after Standard & Poor's Ratings Services said financial firms may be nearing the end of write-downs of subprime asset-backed securities.
The ratings service estimated that write-downs could reach $285 billion globally, up from a previous $265 projection.
Still, S&P's statement said "the end of write-downs is now in sight for large financial institutions." This view allowed investors to hope that the financial markets may soon recover from months of subprime contagion that have damaged nearly every sector of the credit market except Treasurys and some ofter federal agency debt.
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