MW: Treasurys up ahead of more proof of weak economy
By Deborah Levine
NEW YORK (MarketWatch) -- Treasurys rose modestly early Monday, with yields heading down, before a report that is expected to say manufacturing contracted again in October. Two-year note yields ) fell 9 basis points to 1.49%. Investors were also focused on recession fears after Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, said the government's response to the credit crisis may have added volatility to financial-asset markets that were already roiled by an increasingly uncertain growth outlook," he said in Jerusalem. Treasurys also may remain bid before a report on Friday that economists surveyed by MarketWatch expect to show the economy lost 200,000 jobs in October, the biggest drop since March 2003.
