Bleak outlook in bonds but KfW, Spain reap flight to quality harvest
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Bleak outlook in bonds but KfW, Spain reap flight to quality harvest

If the bond market was gloomy last week, this week it was in anguish. US agency spreads went off the rails as the market digested a report from Lehman Brothers that Freddie Mac and Fannie Mae could need far more capital than had been anticipated. At the same time, banks came under pressure on concerns about the US economy.

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