Bonds fall following jobless data
Treasuries sink as low unemployment points to strong economy; greenback rises.
NEW YORK (CNNMoney.com) - Treasury prices fell late Thursday after unemployment data from the Labor Department led investors to believe that the Federal Reserve rate-hike campaign may persist longer than expected. The dollar rose slightly against the euro and yen.
The benchmark 10-year note fell 11/32 to 100-30/32 to yield 4.38 percent, up from 4.33 late Wednesday. The 30-year bond dropped 17/32 to 112-8/32 to yield 4.55 percent, up from 4.51 the previous session. Bond prices and yields move in opposite directions. The two-year note fell two ticks, yielding 4.38 percent, while the five-year note slipped 6/32, yielding 4.32 percent. Treasury prices fell after the Labor Department reported that the number of workers making new unemployment claims dropped to 271,000, its lowest level in almost six years, and lower than Wall Street's estimates of 315,000 new claims. Investors have been speculating that the Fed's 18-month-old rate-hike campaign to rein in inflation was drawing to a close, but Thursday's strong labor market data may prompt traders to rethink their overall view. The Commerce Department also reported that housing starts tumbled 8.9 percent in December, dragged down by weak single-family home construction and despite growth in multi-family units, signaling that the housing market may be cooling. In currency trading, the euro bought $1.2094, down from $1.2109 late Wednesday. The dollar bought ¥115.44, up from ¥115.26 the previous session. --from staff and wire reports ________________ For updated bond charts, click here. |
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