Economists say a new private report will say home prices are still falling in the U.S. as the subprime-mortgage meltdown continues to take its toll. The result, however, is that investors are flocking to the relative safety of Treasury notes. "I still favor the Treasury market," said Shinji Kunibe of the Tokyo unit of JPMorgan Asset Management. "The subprime-mortgage issues will weigh on the economy."

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