Reply #12: Treasurys lose appeal as storm worry fades [View All]

[UpInArms]

http://www.marketwatch.com/news/story.asp?guid=%7BEAE392FB%2DB240%2D470C%2D937A%2D2FE5E6DF2FB4%7D&siteid=mktw

CHICAGO (MarketWatch) - Investors shunned lower-risk Treasury bonds Monday as a calm enveloped financial markets after Hurricane Rita skipped the more heavily populated areas of Texas and Louisiana that are also studded with oil refineries.

"International markets have been relieved that apparently damage from Hurricane Rita was less than feared over the weekend to the U.S. oil infrastructure in the Gulf region," said analysts at Ried Thunberg ICAP, in a morning research note.

There was relief that the storm landed east of Sabine Pass, sparing the coastal Texas cities of Galveston and Houston, in which oil and gas facilities are concentrated. See full coverage of the storm.

Treasurys had gained in anticipation of more widespread damage just a few weeks after the blow of Hurricane Katrina.

...more...