Banking sectors debt drags US corporate bonds lower

Posted by 7Star Sunday, January 24, 2010

Banking sector debt led the corporate bond market lower again on Friday, as investors continued to fret about President Barack Obama's proposal for stricter limits on financial risk-taking. Spreads in the financial sector widened as much as 5 basis points, while corporate bond spreads overall were between 2 and 4 basis points wider, traders said.

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