Treasury bonds fell slightly on Wednesday as Federal Reserve Chairman Alan Greenspan revealed nothing new before a House banking subcommittee. The benchmark 30 year treasury yield rose to 5.68%

Mortgage rates fell, with the average 30 year fixed rate falling to 6.85% and the 15 year fixed rate dropping to 6.53%. The 1 year ARM average edged up to 5.63%.

The stock market was not so sanguine after Greenspan's testimony. The Dow Jones Industrial Average fell 61 points Wednesday on top of a 105 point drop on Tuesday. Wall Street had been hoping Greenspan would indicate a willingness to reduce interest rates. Instead, Greenspan indicated that the Fed was leaning more towards tightening credit than loosening, although the economic crisis in Asia is likely to prevent any tightening in the short term.