Treasurys turn lower as economic outlook reevaluated Government to sell record $75 billion in debt

08/05/2009 • Market Watch

Be wary of what you read in the main stream news what good job news? Treasury prices turned lower Wednesday, pushing yields to the highest level since June in volatile trading, after one of the biggest bond-trading firms raised its outlook for U.S. growth and economic reports showed improvements in employment and factories. Goldman Sachs (GS 168.19, -0.45, -0.27%) raised its forecast for economic growth in the second half of 2009 to an annual rate of 3% from 1%. The firm, one of the 18 primary U.S. government security dealers, expects a return to below-trend growth in 2010. "That could be taking steam out of Treasurys," said Thomas Di Galoma, head of U.S. rates trading at brokerage Guggenheim Capital Markets.