US bonds extend losses after Fed cuts rates 75 bps

US short-maturity Treasury debt prices extended losses on Tuesday, after the Federal Reserve cut interest rates by 75 basis points in the face of credit market turmoil and a deteriorating economy.

US short-maturity Treasury debt prices extended losses on Tuesday, after the Federal Reserve cut interest rates by 75 basis points in the face of credit market turmoil and a deteriorating economy.

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That reduction was less steep than the 100-basis-point cut some market participants had expected.

The 2-year Treasury note's price traded down 11/32 for a yield of 1.52 percent , versus 1.49 percent shortly before the rate decision and versus 1.35 percent late Monday.