NEW YORK (CNN/Money) - Treasury prices turned higher in afternoon trading Wednesday after crude oil prices jumped late in the session, keeping the focus on a possible slowdown in economic growth.
The benchmark 10-year note rose 11/32 of a point to 101-16/32 to yield 4.06 percent, down from 4.11 percent late Tuesday, and the 30-year bond gained 12/32 of a point to 107-20/32 to yield 4.86 percent, down from Tuesday's late 4.88 percent.
Bond prices and yields move in opposite directions.
The two-year note rose 3/32 of a point to 100 even to yield 2.50 percent, and the five-year note climbed 9/32 of a point to 100-11/32 to yield 3.30 percent.
Early profit-taking in bonds gave way to buying as equities reversed early gains. Treasury yields, which move inversely to prices, reached their lowest levels this month.
Oil prices slipped early but surged late in the day on worries about tight heating oil supplies.
Record energy prices are cutting disposable income for many Americans, limiting growth in retail sales, and economists worry that rising fuel costs could slow the U.S. and global economies.
Consumers are already dealing with higher gasoline prices and, as they light their furnaces for the winter season, face record heating oil prices as well.
The Conference Board research group said on Wednesday that confidence in the U.S. economy among chief executives fell for a second straight quarter.
"CEO confidence has slipped considerably over the past two quarters, as both current conditions and expectations have softened," Lynn Franco, director of the private group's consumer research center, told Reuters.
Bonds have been supported by last week's softer-than-expected September payrolls report, which advanced the debate about a possible pause in the Federal Reserve's rate increases in December or early in 2005.
"With higher energy prices, the absence of fiscal stimulus, sluggish job creation and some moderation in Chinese growth, the Fed is probably closer to being done than it thinks," Stephen Wood, economist at Insight Economics, told Reuters.
Trading could be range-bound until Friday, when dealers get updates on retail sales, industrial production and producer prices, as well as the first University of Michigan consumer sentiment survey for October.
Federal Reserve Chairman Alan Greenspan also will speak on Friday on the subject of oil.
"That just adds to everything that's going on Friday, so we're just stuck following oil and stocks until then," John Canavan, market analyst at Stone and McCarthy Research Associates, told Reuters.
In the currency market, the dollar weakened against the euro and traded flat against the Japanese yen.
At around 4:30 p.m. ET, the euro bought $1.2346, up from $1.2328 late Tuesday, and the dollar bought ¥109.73, unchanged from the previous session.
-- from staff and wire reports
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