NEW YORK (CNN/Money) -
U.S. Treasury prices turned mixed on Friday, revived by fresh stock market weakness, after September jobs data initially doused hopes for an immediate central bank rate cut to stimulate the sluggish economy.
Around 4:30 p.m. ET, the benchmark 10-year note gained 4/32 point to 105-24/32, taking its yield to 3.67 percent. The 30-year bond rose 7/32 point to 110-5/32, yielding 4.72 percent.
Five-year notes stood unchanged at 102-17/32, yielding 2.69 percent. At the very short end, two-year notes dipped 3/32 of a point to 100-5/32, pushing yields to 1.79 percent.
The bond market had bet heavily that the data would be dire enough to force a reluctant Federal Reserve to ease ahead of its regular policy-setting meeting on Nov. 6, but the report was merely mixed and yields, which run inverse to prices, rose between five and 12 basis points almost immediately.
"The report (meant) the status quo remains," said John Canavan, market analyst at Stone & McCarthy. "The economy is just sputtering along."
Canavan said the economy, while anemic, was not weak enough to compel the Fed to cut interest rates. On the other hand, it wasn't strong enough to encourage stock investors.
Treasurys, however, bounced back to recover some losses when another bout of selling affected the stock market.
At one point, the tech-laden Nasdaq composite index hit a six-year low. Other major stock indices also fell sharply on Friday.
The unemployment rate surprised for a second month, falling to 5.6 percent from 5.7 percent in August, while analysts on average had looked for a rise to 5.9 percent and some had expected 6.0 percent.
Nonfarm payrolls fell 43,000 in September compared with average forecasts of a 5,000 gain, but August's result was revised up sharply to a rise of 107,000 from the initial estimate of a 39,000 gain.
Dollar up slightly versus euro, yen
The unexpected fall in September unemployment sparked a rally in the dollar, and the greenback sustained its gains even as stocks, which have a big influence on currencies, fell into the red.
Around 4:00 p.m. ET, the euro bought U.S. 97.94 cents, down from 98.78 cents late Thursday. The dollar bought ¥ 123.23, up from ¥122.61 Thursday.
-- from staff and wire reports
|
