The short end of the Treasury market is likely to attract about as much interest from investors this week as bonds backed by the Rwandan goverument.

Avoidance of short-dated Treasuries comes amid signs that the U.S. economy continues to grow apace and that the Federal Reserve will soon tighten monetary policy. Higher rates have made shortterm governments considerably less attractive in recent sessions and virtually ensured a weak performance by the short end this week. "Clearly, with the Fed hanging over that end of the market, there is no room for the short end to improve," said Jerry Zukowski, money market economist at PaineWebber Inc. "Bat the employment report has done is brought uncertainty back into the market."

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