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Bonds rise; dollar mixed
Treasurys rise on Syria attack and reported buying from Asia; greenback rises against yen.
April 27, 2004: 3:55 PM EDT

NEW YORK (CNN/Money) - Treasury prices edged higher Tuesday despite strong economic news as security concerns following explosions in Syria and continued violence in Iraq triggered a modest bid for safe-haven securities.

At around 3:30 p.m. ET, the benchmark 10-year note rose 12/32 of a point to 96-27/32 to yield 4.40 percent, down from 4.43 late Monday, and the 30-year bond gained 10/32 to 102-12/32 to yield 5.21 percent, down from 5.23 late Monday.

The two-year note climbed 4/32 of a point to 98-24/32, yielding 2.16 percent, and the five-year note rose 9/32 to 98-9/32 to yield 3.50.

Explosions and heavy shooting shook the Syrian capital Damascus Tuesday causing casualties in an area where foreign embassies are located, witnesses and media reports said.

Coupled with ferocious fighting between U.S. forces and insurgents in the Iraqi city of Fallujah, the flare-up of violence in Damascus prompted fears that the conflict in Iraq could be spreading.

On a relatively slow day for the bond market, it was enough reason for traders to trickle back into what many argue is already an oversold market after five weeks of heavy losses.

"The attacks definitely have something to do with the market rally," said Frank Hsu, director of global fixed income at Fimat. "The concern would be the continuation of more widespread violence in Iraq and throughout the Middle East."

The security jitters were enough to offset an improvement in consumer confidence and yet another jump in home sales, both of which appeared to increase the chances of an early interest rate hike from the Fed.

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The Conference Board measure of consumer confidence rose to 92.9 in April from 88.5 in March, confounding expectations of a dip. Indeed, there had been chatter in the market that the report would be much weaker, so the result forced some speculators to cut back long positions.

Rubbing salt in the wounds of bond bulls, the survey's measure of how hard it is to find a job fell to its lowest level since November 2002, suggesting April's payrolls figures may show further improvement after last month's out-sized 308,000 gain.

The demand for Treasurys also lifted the dollar against the yen, as it bought ¥109.52, up from ¥108.69 late Monday. The dollar fell against the euro, which bought $1.1928, up from $1.1869 late Monday.  Top of page

-- Reuters contributed to this story.



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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.