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NEW YORK (CNN/Money) -
Treasury prices were mixed Thursday after more weak economic reports fueled fears of slowing growth in the second half of 2005.
The dollar fell against the euro and the yen.
The benchmark 10-year Treasury lost 4/32 of a point to 101-25/32, yielding 4.03 percent, up from 4.02 percent late Wednesday.
The 30-year bond fell 28/32 to 116-14/32 to yield 4.30 percent, up from 4.25 in the previous session. Treasury prices and yields move in opposite directions.
The five-year note gained 4/32 to yield 3.82 percent; while the two-year note added 5/32 to yield 3.72 percent.
Reporting a slowdown in employment growth and in new orders, the Institute for Supply Management survey said Thursday its index of national factory activity eased to 53.6 in August from 56.6 in July, well below economists' median forecast of 56.5.
Treasury prices also reacted to the Commerce Department's report that U.S. construction spending went unchanged for the month of July, flat versus forecasts of a 0.5 percent gain.
Bond prices failed to react to a Commerce Department report on consumer spending earlier in the session, which revealed that inflation edged 0.3 percent higher in July. The measurement is significant since it is closely monitored by members of the Federal Reserve in their monetary policy decisions.
Overall consumer spending grew by 1 percent for July, while the savings rate fell as people tapped their holdings.
Bond prices also ignored jobless claims data, which rose 320,000 in the week ended Aug. 25 from an upwardly revised reading of 317,000, according to the Labor Department.
Instead, markets have also focused their attention on the rising price of crude oil and gasoline amid Hurricane Katrina's fallout.
Oil prices settled above $69 a barrel Thursday, but were not far off the trading high mark of $70.85 set Tuesday.
On the NYMEX exchange, wholesale gasoline futures were up 10.97 cents to $2.365 a gallon.
Recent higher oil and gas prices are expected to produce an inflationary effect. Bond investors fear inflation, since it erodes the value of fixed-income investments.
In currency trading, the dollar tumbled against the yen and the euro.
The euro bought $1.2493, up from $1.2345 late Wednesday. The dollar bought ¥109.83, down from ¥110.66 in the previous session.
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