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NEW YORK

Bush agrees to stop filling oil stockpile

The Bush administration on Friday bowed to congressional pressure and agreed to temporarily stop filling a key government oil stockpile, potentially increasing supply even further.

Despite the moves designed to allay concerns about an overheated oil market, traders did what they've been doing for months now: they pushed crude oil and gasoline futures to new highs.

The price for a barrel of benchmark light, sweet crude for June delivery jumped $2.17 to settle at record close of $126.29 on the New York Mercantile Exchange. Earlier in the session, prices surged to $127.82 a barrel, also a new high.

WASHINGTON

Fannie Mae relaxing down-payment rules

By relaxing down-payment requirements for borrowers in markets where home prices are falling, Fannie Mae aims to resuscitate the flagging housing market and respond to pressure from industry groups, consumer advocates and lawmakers.

Washington-based Fannie Mae said Friday it will require minimum down payments of 3 percent for loans made through its computerized underwriting system.

The new policy, effective June 1, replaces a December one that required a 5 percent down payment for home loans in areas with declining real estate prices. Fannie Mae predicts U.S. home prices will drop 7 percent to 9 percent on average this year.

NEW YORK

Treasury prices decline after oil prices surge

Treasurys fell Friday after rising oil prices had investors worrying about inflation's effect on fixed-income returns.

The benchmark 10-year Treasury note fell 0.22 points to 100.22 and yielded 3.85 percent, up from 3.82 percent late Thursday, according to BGCantor Market Data.

The 30-year long bond fell 0.44 points to 97.72 and yielded 4.58 percent, up from 4.55 percent late Thursday.

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