U.S. 10-Year Treasury Falls; Greenspan Says Budget Deficit `Unsustainable'

[bemildred]

March 2 (Bloomberg) -- U.S. 10-year Treasury notes fell as Federal Reserve Chairman Alan Greenspan said the budget deficit may lead to higher interest rates and indicated that the economy no longer needs tax cuts to grow.

The comments to the House Budget Committee helped keep the security's yield, which moves inversely to its price, near a three-month high. Greenspan's last appearance before Congress on Feb. 16 and 17 sparked the biggest weekly drop in 10-year notes since May when he said interest rates are ``fairly low'' and a drop in long term-debt yields was a ``conundrum.''

``Everything is pointing to higher yields,'' said Thomas McManus, chief investment strategist in New York at Banc of America Securities LLC, one of the 22 primary U.S. government securities dealers that trade with the Fed's New York branch.

Bloomberg

[rkc3]

1. Greenspan may be on his way out after that comment.

O'Reilly will be calling him a traitor very quickly.

[TexasLawyer]

2. The deficit is "unsustainable," yet Greenspan at the same time

supports Bush's plan to piratize Social Security. The man is either on crack or is on the RNC payroll.

Give me back the good old days, when Fed Chairmen spoke but were never, ever understood.

[Justitia]

3. No kidding! What senile doublespeak!! -eom

[Robert Oak]

4. oops, some truth leaked out, he's surely to be retired n/t