NEW YORK (CNN/Money) -
Bonds took some comfort from a dip in stocks Thursday as prices edged higher on mixed economic data and falling oil prices, with traders looking ahead to Friday's jobs report.
The dollar was mixed against the euro and the Japanese yen.
At about 4:15 p.m. ET, the benchmark 10-year Treasury note added 11/32 of a point to 100-11/32 to yield 4.7 percent, down from 4.74 percent late Wednesday. The 30-year bond added 10/32 of a point to 99-18/32 to yield 5.4 percent, down from 5.42 late Wednesday. Prices and yields move in opposite directions.
The two-year note edged higher 2/32 of a point to 99-25/32 to yield 2.61 percent, and the five-year note added 6/32 to yield 3.86 percent.
A mixed bag of economic data gave bond investors little guidance. The Institute for Supply Management's index of business activity in the U.S. services sector eased to 65.2 in May from 68.4 in April, compared with a forecasted dip to 66.0.
The ISM employment index improved to 56.3, reinforcing analyst estimates for a strong upcoming jobs report.
Other figures showed factory orders fell a larger-than-expected 1.7 percent in April, but analysts saw that as a temporary pullback after a big advance in March.
"You're not going to get a clear signal until tomorrow," David Ging, fixed-income strategist at Credit Suisse First Boston told Reuters, referring to the announcement of May's unemployment and payroll growth figures to be released by the Bureau of Labor Statistics.
Economists surveyed by Briefing.com expect employers to have added 225,000 jobs, after adding 288,000 in April, with the strong data forcing the Federal Reserve to raise interest rates when it meets at the end of June. Bond traders fear higher interest rates because they erode the value of Treasurys.
Oil prices fell after OPEC pledged to increase production, although by less than investors had anticipated, and U.S. inventory information showed healthier petroleum stockpiles.
U.S. light crude for July delivery fell as much as $1.16 to $38.80 a barrel, to settle at $39.28, while London's Brent crude pulled back to$36.40 from its opening price at $37.39.
Rising energy costs have mixed implications for Treasury prices because they can fuel inflation and spur higher interest rates but also act as a tax on consumers that slows economic growth and tempers the trend toward higher rates.
In currency trading, the dollar was mixed against the euro and the yen. The euro bought $1.2224, up a bit from $1.2215, and the dollar bought ¥111.74, up from ¥110.07 late Wednesday.
|
