Bonds rise on Fed minutes
Federal Reserve releases grim forecast, sparking flock to safe-haven Treasurys.
NEW YORK (CNNMoney.com) -- Government bond prices rose Wednesday, with gains accelerating after the Federal Reserve released its most recent - and increasingly grim - forecast for the economy as the minutes from its April meeting.
The benchmark 10-year note rose 16/32 to 99-15/32, and its yield fell to 3.19% from 3.25% late Tuesday. The 30-year bond jumped 31/32 to 101-21/32, and its yield sank to 4.16% from 4.21%.
The 2-year note increased 4/32 to 100-3/32, and its yield fell to 0.82% from 0.90%. The yield on the 3-month note dipped to 0.18% from 0.19%.
Meanwhile, a key short term lending rate hit another record low. The 3-month Libor fell to 0.72% Wednesday from 0.75% Tuesday, down from 0.83% Friday, according to Bloomberg.com. The overnight Libor rate was unchanged from 0.22% Monday.
Libor, the London Interbank Offered Rate, is a daily average of rates that 16 different banks charge each other to lend money in London. The closely watched benchmark is used to calculate adjustable-rate mortgages. More than $350 trillion in assets are tied to Libor.