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Treasurys move higher
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March 9, 2000: 3:31 p.m. ET
Buyback program, falling oil prices provide support; dollar weakens
By Staff Writer Jill Bebar
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NEW YORK (CNNfn) - Treasury bonds ended higher Thursday, the first time this week, as the initial phase of the U.S. Treasury's buyback program provided support.
"The bottom line is the prices paid by the Treasury for the securities were slightly at or above prices for those issues. That is positive," said Tony Cresenzi, senior market strategist at Miller Tabak & Co.
A decline in oil prices also helped Treasurys. In New York, April crude oil futures last traded at $30.98 a barrel, off nine-year highs seen earlier this week. High commodity prices, which hint of inflation, can negatively impact the market.
Shortly after 3 p.m. ET, the 30-year bond rose 2/32 to 101-8/32. Its yield, which moves inversely to its price, fell to 6.15 percent from 6.16 percent Wednesday. The 10-year Treasury note gained 7/32 to 101-3/32, its yield falling to 6.34 percent from 6.38 percent Wednesday.
In the first leg of the buyback program, the Treasury bought $1 billion of outstanding bonds in maturities ranging from February 2015 to February 2020, as expected. The average yield of the securities was 6.49 percent.
Faced with a budget surplus, the Treasury announced plans in late January to reduce the issuance of long-term debt by as much as $30 billion. The operation was conducted through primary government securities dealers through an auction process, marking the first time in 70 years that the government repurchased national debt.
Over $8 billion offers were submitted and the bid to cover ratio, which is the number of bids received compared with the number of bids accepted, was solid.
Analysts said there was sufficient interest in the program for it to continue.
Looking ahead, Marilyn Cohen, President of Envision Capital, a Los Angeles-based money manager was upbeat. She told CNNfn's market coverage that the buyback program was "good news" for the bond market. (88.2K WAV) (88.2K AIFF)
But, strength in U.S. technology stocks limited any upside potential for bonds. In late trading, the tech-heavy Nasdaq composite index continued to flirt with the landmark 5,000 level. On Tuesday, the index hit an intraday high above that psychologically significant level.
The latest economic news had no apparent market effect. Wholesale inventories rose 0.7 percent in January against a 0.4 increase in December, according to the Commerce Department. The number was higher than forecasts of a 0.4 percent increase.
U.S. jobless claims rose 5,000 to 280,000 in the week ended March 4, compared with a gain of 27,000 in the previous week, indicating a continued tight labor market.
(Click here for a look at Briefing.com's economic calendar.)
Dollar slips
The U.S. dollar fell against the major currencies Thursday. Shortly after 3 p.m. ET, the dollar traded at 106.49 yen, down from 107.20 yen Wednesday, a 0.7 percent loss in the dollar's value.
Meanwhile, the euro traded at 96.79 cents, up from 96.23 cents Wednesday, a 0.6 percent loss in the dollar's value. 
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