Bonds edge higher, dollar splitsJobs report remains in focus, outweighing service sector reading; dollar mixed versus euro, yen.NEW YORK (CNNMoney.com) -- Bonds ticked higher Monday as traders overlooked a larger-than-expected reading from the service sector and instead focused on weakness in Friday's January employment report. The dollar gained against the euro and fell versus the yen.
The benchmark 10-year note added 3/32, or 94 cents on a $1,000 note, to yield 4.81 percent, down from 4.82 percent late Friday. The 30-year bond jumped 6/32, or $1.87 on a $1,000 note, to yield 4.91 percent, down from 4.93 percent the previous session. Bond prices and yields move in opposite directions. In shorter-dated debt, the five-year note rose 2/32 to yield 4.80 percent, while the two-year note held steady to yield 4.93 percent. In a quiet session, investors overlooked the sole economic report issued Monday, a bigger-than-expected reading on the U.S. service sector. The Institute for Supply Management's said that the pace of growth in the service sector rose to its strongest level in eight months to 59.0 in January from 56.7 in December, topping a median forecast for 57.0. Traders appeared to be still focused on Friday's January employment report which revealed slower job growth during the month and an uptick in the unemployment rate. (Full story) The job market's weakness and relatively tame wage gains seemed to suggest the Federal Reserve will not need to resume hiking rates. Last week, the Fed held interest rates steady at 5.25 percent at its two-day policy meeting for the fifth straight time. In currency trading, the euro bought $1.2927, down from $1.2968 late Friday. The dollar bought ¥120.38, down from ¥121.07 in the previous session. --from staff and wire reports |
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