BOSTON: Reebok International and its corporate parent, Adidas Group, an Olympic sponsor, are dropping plans for a hospitality facility to host athletes, guests and journalists at the Beijing Games because of logistical demands made by the Chinesegovernment. Reebok, which has a major marketing campaign built around Yao Ming, the Chinese basketball star and Reebok endorser, also said there was now only a slim chance that the brand would be able to host a public event with Yao in Beijing, as the...

Treasury prices plunged Tuesday, giving back gains after the biggest rally in three years.

Traders went into sell mode after Citigroup landed a cash injection that soothed some fears over the health of the financial sector.

Abu Dhabi Investment Authority, the world’s largest sovereign wealth fund, will take a 4.9% stake in Citi through a $7.5 billion issue of preferred stock. It gives Citi fresh capital as it wrestles with credit liquidity issues stemming from the subprime mortgage crisis.

The deal sparked some rare optimism over the ability of banks to cope with the credit debacle. Still, that relief was tempered by the 11% dividend Citi must pay Abu Dhabi, topping the average yield on U.S. junk bonds.

The benchmark 10-year note was yielding 3.95%, from 3.84% late Monday. In a strong rally Monday, 10-year yields were pushed down as far as about 3.79%, their lowest since early 2004.

Outside the optimism from the Citi cash injection, there was further bad news on the U.S. housing market that did little to pare bond losses. Grim tales on home sales have become commonplace.

The S&P/Case-Shiller National Home Price Index fell 1.7% from June, marking the largest quarterly decline in 21 years.

According to the index, prices of existing U.S. single-family homes in the third quarter slumped 4.5% from a year earlier, matching a record decline from the previous period.

Bonds held at weaker levels even after data showed U.S. consumer confidence hit a two-year low this month and manufacturing activity in the Midwest slipped in October.

Meantime, Goldman Sachs slashed its target for the expected trough in U.S. benchmark interest rates by a full percentage point, citing an increased probability of recession and the likelihood of a prolonged period of sluggish performance for the U.S. economy.

The two-year note was trading 10/32 lower in price for a yield of 3.08%, from 2.91% late Monday, while the five-year note fell 25/32 for a yield of 3.38%, from 3.21%.

The 30-year bond was 1-10/32 lower in price for a yield of 4.37%, from 4.29% on Monday.

If ever the time was ripe for reforming farm subsidies, this would be it. Food prices are soaring, the farm economy is thriving and Washington faces large budget deficits. But horse trading both figuratively and literally has largely preserved the $25 billion in direct payments aimed at giant farms. The Senate-passed farm bill included a provision making it easier for horse breeders to qualify for the 15% long-term capital gains rate. Senate Minority Leader Mitch McConnell, R-Ky., and...