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NEW YORK | Investors sold Treasurys on Wednesday as inflation expectations grew a day before the European Central Bank’s meeting on interest rates.

The price of the 10-year note fell 57 cents per $100 invested in late trading. Its yield, which moves in the opposite direction, rose to 3.55 percent from 3.49 percent late Tuesday.

The ECB is expected to boost its interest rate to 1.25 percent from 1 percent to curb inflation. That is in sharp contrast to the Federal Reserve’s policy of keeping short-term interest rates near zero and buying government debt to keep borrowing rates low. Traders worry that rising oil prices will push inflation higher and the central bank eventually will have to raise rates.

Investors also sold Treasurys on expectations of more supply hitting the market next week.


CEO: US Airways last big merger candidate

TEMPE, Ariz. | The CEO of U.S. Airways Group Inc. said there’s really only one big airline merger that could still happen, and it would involve his airline.

Doug Parker runs the fifth-biggest U.S. airline. At a media event Wednesday, he said that if one of the big three airlines, United, Delta, or American, wants to make a deal, U.S. Airways is the last one left.

Mr. Parker said U.S. Airways could also continue as a stand-alone airline.

U.S. Airways missed out on the recent wave of airline mergers. It included Delta Air Lines Inc. buying Northwest in 2008, United and Continental merging into United Continental Holdings Inc. last year, and Southwest Airlines Co.’s planned purchase of AirTran.

From wire dispatches and staff reports