Bonds rally as Fed cuts rate to avert recession
NEW YORK (MarketWatch) -- Treasury bonds rallied Tuesday, sending yields sharply lower, with short-term bonds gaining after an emergency rate cut by the Federal Reserve, while long-term bonds gained on expectations the move will be insufficient to calm market fears about a recession.
After a global rout in stock markets on Monday, the Fed cut its overnight lending rate by 75 basis points to 3.50% before the market opened Tuesday.
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