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Bonds end mixed Treasury traders look ahead to Friday's closely watched employment report; dollar mixed. NEW YORK (CNNMoney.com) -- Treasury prices ended mixed Thursday as traders turned their attention to Friday's key payroll numbers and the Federal Reserve policy meeting next week. The dollar was mixed against the euro and the yen.
The benchmark 10-year note gained 1/32, or $0.31 on a $1,000 note, to yield 4.96 percent. The 30-year bond gained 6/32, or $1.87 on a $1,000 note, to yield 5.04 percent, down from 5.06 in the previous session. Bond prices and yields move in opposite directions. The five-year note fell 2/32, yielding 4.90 percent, while the two-year note was down two ticks, yielding 4.99 percent. In economic news, June factory orders rose a smaller than expected 1.2 percent, after rising 1 percent in May, the government reported. The Institute for Supply Management's service sector index for July also missed estimates, dropping in the month. An earlier report showed that the number of Americans filing new claims for unemployment rose last week by more than expected. Friday's jobs report is likely to shape thinking on whether the Fed will take a break from its tightening campaign in August. The Fed has boosted interest rates 17 times in a row since June 2004, bringing the fed funds rate up to 5.25 percent. Fed fund futures were pricing in about a 40 percent chance that the U.S. central bank will raise rates to 5.50 percent next week. Inflation hurts bonds as it erodes the value of the fixed-income investment. However, rising interest rates generally help the dollar as they make dollar-denominated securities more attractive to foreign investors. In currency trading, the euro bought $1.2808, up from $1.2787 late Wednesday. The dollar bought ¥114.96, up from ¥114.61 in the previous session. |
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