(Bloomberg) -- New Zealand's dollar fell from a 22-
year high on speculation the Federal Reserve will hold off
cutting U.S. interest rates in 2007, making it less likely the
yield premium on the South Pacific nation's debt will widen.
The benchmark 10-year U.S. Treasury dropped the most in
three years yesterday, sending the yield above 5 percent for the
first time since August as traders ended bets on a rate cut by
the Fed and some anticipated an increase. That may damp demand
highest-yielding New Zealand debt and the currency to buy it.
Read more at Bloomberg Currencies News
year high on speculation the Federal Reserve will hold off
cutting U.S. interest rates in 2007, making it less likely the
yield premium on the South Pacific nation's debt will widen.
The benchmark 10-year U.S. Treasury dropped the most in
three years yesterday, sending the yield above 5 percent for the
first time since August as traders ended bets on a rate cut by
the Fed and some anticipated an increase. That may damp demand
highest-yielding New Zealand debt and the currency to buy it.
Read more at Bloomberg Currencies News
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