Treasuries extend longest slump in a year
Treasuries declined for a seventh day, the longest slump in more than a year, on speculation the Federal Reserve may delete reference to interest rates staying low for a "considerable time" after it ends bond buying.
Government bonds worldwide headed for their biggest two- week loss in 14 months before policy makers meet Sept. 16-17. There's a 61 percent chance the central bank will increase its benchmark rate by July 2015, federal fund futures show. Benchmark 10-year yields rose to the highest level in two months after reports showed retail sales climbed at the fastest pace in four months and consumer confidence increased.
Treasury 10-year yields rose six basis points, or 0.06 percentage point, to 2.61 percent at 5 p.m. Friday New York time, according to Bloomberg Bond Trader data. They touched the highest level since July 8 and have added 15 basis points this week, the most since the five days ended Aug. 16, 2013.
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The 2.375 percent note due in August 2024 declined 17/32, or $5.31 per $1,000 face amount, to 97 30/32. The last seven-day slide ended June 25, 2013.
Southwest Airlines to launch flights to Costa Rica
Southwest Airlines plans to launch its first flights to Central America.
The Dallas-based carrier said Friday it has applied for permission to fly to San Jose, Costa Rica, from Baltimore. The flights would begin March 7.
Southwest launched its first international flights on July 1 and will be flying to seven non-U.S. cities by the end of the year as it absorbs merger partner AirTran Airway's destinations.
In addition to its first foray outside Mexico and the Caribbean, the Costa Rica flights mark Southwest's first international destination that hadn't been served by AirTran.
HSBC paying $550M to resolve bond claims
WASHINGTON -- Big British bank HSBC has agreed to pay $550 million to resolve U.S. claims that it misled U.S. mortgage giants Fannie Mae and Freddie Mac about risky mortgage securities it sold them before the housing market collapsed in 2007.
The Federal Housing Finance Agency, which oversees Fannie and Freddie, announced the settlement Friday with HSBC. London-based HSBC is Europe's largest bank and also has extensive operations in the U.S.
HSBC sold the securities to the two mortgage companies between 2005 and 2007. Under the settlement, HSBC is paying $176 million to Fannie and $374 million to Freddie.
The government rescued Fannie and Freddie at the height of the financial crisis in September 2008 when they were on the verge of collapse. The companies received taxpayer aid totaling $187 billion.
-- Herald wire reports