| Old conundrum, new twist
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| Inverted or flat, the yield curve points to a weaker Federal Reserve, not a downturn. (Full story)
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NEW YORK (CNN/Money) -
Treasury prices rose and yields fell Thursday after a report showing a slowdown in regional manufacturing offset signs of cooling in the housing sector.
The dollar declined against the euro and the yen.
The benchmark 10-year note added 2/32 to 100-9/32 to yield 4.46 percent, down from 4.48 late Wednesday. The 30-year bond gained 5/32 to 110-22/32 to yield 4.65 percent, down from 4.67 Wednesday. Bond prices and yields move in opposite directions.
In shorter-dated debt, the two-year note rose one tick, yielding 4.37 percent. The five-year note was up 2/32, yielding 4.40 percent.
Treasury prices fell slightly Thursday morning after the Census Bureau said housing starts slowed to an annual pace of 2.01 million, less than the 2.06 million predicted by analysts. (Full story)
But prices rebounded after the Philadelphia Federal Reserve Bank said its index of business activity fell to 11.5 in November, below analysts' expectations of a dip to 15.3. (Full story)
The survey of mid-Atlantic factories is one of the first indicators of U.S. monthly manufacturing activity and is often used to gauge the overall state of factories in the country.
The surge came on the heels of Wednesday's rally, when longer-dated debt spiked, helping to narrow the spread between long and short rates. But Treasuries had difficulty holding on to their advances, and by late Thursday afternoon had pared most of the session's gains.
In currency trading, the dollar fell against the euro and yen. The euro bought $1.1757, up from $1.1683 late Monday. The dollar bought ¥118.69, down from ¥119.07 in the previous session.
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