MW: Treasurys erase gain; fiscal cliff talks to begin
By Deborah Levine
SAN FRANCISCO (MarketWatch) -- Treasury prices erased a gain up on Friday ahead of a meeting between President Barack Obama and Senate and House leaders to begin discussing the slate of expiring tax cuts and spending measures which, unless mitigated, are seen sending the economy over a fiscal cliff into a recession. "We have low expectations that today's talks will be anything more than the start of a long process and think the markets will respond accordingly by doing more of the same: Treasurys firm, stocks under pressure," said bond analysts at CRT Capital Group. Yields on 10-year notes 10_YEAR -0.44% , which move inversely to prices, fell as low as 1.57% then lately traded at 1.59%.
