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Treasurys end mixed
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June 30, 2000: 3:10 p.m. ET
Bonds decline, but month-end buying lifts other securities; dollar mixed
By Staff Writer Jill Bebar
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NEW YORK (CNNfn) - Prices of Treasury bonds sagged Friday, but other maturities were unchanged to slightly higher, benefiting from end of the month and quarter buying.
In the currency markets, the dollar was mixed, rising against the yen but slipping against the euro.
Shortly before 3 p.m. ET, the 10-year Treasury note, considered the market benchmark, rose 4/32 of a point in price to 103-14/32. The yield, which moves in the opposite direction to price, dropped to 6.02 percent from 6.04 percent Thursday.
The 30-year bond fell 8/32 to 104-31/32, its yield rising to 5.89 percent  from 5.88 percent.
With trading activity lackluster ahead of a holiday-shortened week, analysts said they would not place any significance to the weakness among bonds. "It's very thin (volume) today, and that's exaggerating price movement," said John Santoro, head of government trading at S.G. Cowen Securities.
The Bond Market Association recommends an early close Monday, and U.S. financial markets are closed Tuesday in observance of the Fourth of July holiday.
Although most of the month and quarter-end buying was thought to have occurred Thursday, some market participants disagreed. "There is clearly  some month-end buying going on," said Scott Graham, head government trader at Prudential Securities. Portfolio managers buy Treasurys at this time for reporting purposes before presenting them to clients.
Analysts expect Treasurys to be confined to narrow ranges until the release of next Friday's key June employment report.
Jobs data may offer insight
With investors looking ahead to the next Fed policy meeting Aug. 22, analysts said the employment report will be significant. The central bank raised short-term interest rates six times in the past year in order to cool the economy and keep inflation at bay. With recent signs of an economic slowdown, it opted to leave rates unchanged Wednesday.
But the federal funds futures contract, a gauge of expectations of upcoming Fed policy, suggests the Fed may boost rates again by a quarter percentage point at the August meeting.
Charles Lieberman, chief economist at First Institutional Securities, told CNN's Before Hours the jobs report should provide clues as to whether the signs of slowing have merely been an "aberration." (314K WAV) (314K AIFF)
Analysts polled by Briefing.com forecast payrolls to have risen to 250,000 in June compared with a 231,000 gain in May, and the unemployment rate to decline to 4 percent from 4.1 percent in the prior month.
Early in the day, economic news pressured longer-dated maturities, such as 30-year bonds. U.S. personal income rose 0.4 percent in May compared with a revised 0.2 percent gain in April, the Commerce Department reported. The number was slightly above forecasts of a 0.3 percent gain. Personal spending rose 0.2 percent, in line with consensus estimates.
(Click here for a look at Briefing.com's economic calendar.)
Dollar mixed
The dollar rose against the Japanese yen, but was dragged lower against the euro. Recent speculation that the Bank of Japan may hike interest rates at its next policy meeting July 17 had helped the yen.
"We've had a run up for the yen," said Brian Arabia, vice president of foreign exchange at ABN Amro Bank in Chicago. "Now we're seeing a bit of profit taking."
Investors await Tuesday's Japanese Tankan survey for the second quarter. A key report on business sentiment, analysts said it will be important in  determining whether or not Japan will abandon it current zero-interest rate policy.
Meanwhile, the euro continued to strengthen against the dollar, rising briefly above the 96-cent level. The currency was bolstered by positive economic news out of the 11-nation euro zone.
Shortly before 3 p.m. ET, the dollar traded at 105.93 yen compared with 105.29 Thursday, a 0.6 percent gain in the dollar's value. The euro was at 95.37 cents, up from 95.10 cents Thursday. 
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