Bonds jump on good inflation newsBut then give back gains as session wears on; key measure of retail prices comes in better than expected; dollar gains.NEW YORK (CNNMoney.com) -- Treasury bond prices jumped after a key inflation gauge came in better than expected Friday but pared most of their gains as investors took profits. The dollar rose against the euro and the yen.
The benchmark 10-year note edged higher one tick, or $0.31 on a $1,000 note, to yield 4.60 percent, unchanged from late Thursday. Earlier in the session, the benchmark yield had fallen as low as 4.53 percent. Bond prices and yields move in opposite directions. The 30-year bond also gained 1/32, leavings its yield at the 4.72 percent level reached in the previous session. The five-year note held steady, yielding 4.57 percent. The two-year note also was unchanged, yielding 4.73 percent. Treasury prices received a boost early in the session after a government report showed prices paid by consumers stayed in check in November. (Full story) The Consumer Price Index, which measures prices paid at the retail level, was unchanged in November, the Labor Department said. Economists surveyed by Briefing.com had forecast a 0.2 percent rise in the CPI. The closely watched core CPI, which excludes volatile food and energy costs, also was unchanged in November. That was better than forecasts - economists had expected a 0.2 percent rise. In currency trading, the euro bought $1.3079, down from $1.3145 late Thursday. The dollar bought ¥118.13, up from ¥117.85 in the previous session. |
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