|
NEW YORK (CNN/Money) -
Treasuries remained relatively unchanged on thin trading volume Friday as investors, facing no new economic reports, focused on the rising price of crude oil.
The dollar lost against the euro and the yen.
The benchmark 10-year note lost 1/32 of a point to 100-10/32, to yield 4.21 percent, unchanged from late Thursday, while the 30-year bond declined 4/32 to 114-10/32 yielding 4.43 percent, unchanged from the previous session. Treasury prices and yields move in opposite directions.
In shorter-dated debt, the five-year note stayed unchanged, yielding 4.08 percent, and the two-year note remained unchanged at 99-23/32, yielding 4.02 percent.
Treasuries edged lower across the board as investors eyed oil prices, which regained some upward momentum Friday. (Full story.)
Investors worry that surging energy costs are helping inflation rear its head again, with the government's latest price readings showing sharp jumps in inflationary pressures. (Full story.)
Inflation hurts bonds as it erodes the value of the fixed-interest paying investments.
Traders are also likely looking ahead to next week, when Federal Reserve Chairman Alan Greenspan is scheduled to speak on central banking. That speech may shed more light on whether the Fed plans to step up its measured pace of interest rate hikes.
The next major piece of economic data will come in early September, when the government releases its next jobs report.
The dollar was mixed against the euro and yen.
While inflation hurts Treasury prices, rising inflation makes it more likely the Fed will raise interest rates, which makes dollar-denominated securities more attractive to foreign investors.
The euro bought $1.2231, up from $1.2176 late Thursday, while the dollar bought ¥109.68, down slightly from ¥110.52 in the previous session.
___________________
Is inflation rearing its ugly head? Click here for more.
Is it time to bail on bonds? Click here.
Click here for updated bond charts.
|
