Bond prices jump on real estate weakness

Treasury prices take biggest jump in two weeks after government report shows new home sales declined to a 12-year low in November.

Subscribe to Bonds
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

NEW YORK (CNNMoney.com) -- Bond prices jumped the most in two weeks after a report showed new home sales tumbling.

The price of the benchmark 10-year note rose nearly a full point, 31/32, to 101 8/32, yielding 4.09 percent, down from 4.21 percent Thursday.

The 30-year's yield fell to 4.52 percent from 4.63 percent in the previous session

The yield on the 2-year fell to 3.14 percent, from 3.22 percent in the prior session. The yield on the 5-year was 3.54 percent, down from 3.60 percent Thursday.

On Thursday Treasury prices had also rallied as news of the assassination of Pakistani opposition leader Benazir Bhutto startled markets and sparked demand for safe assets.

In economic news, sales of new homes plunged even more than expected to their lowest level in more than 12 years, leaving the market glutted with unsold homes and pointing to more trouble ahead for the battered housing market.

In currencies, the dollar fell against the yen, buying ¥112.71 from ¥113.33 earlier. Against the euro, it bought €0.679, from €0.685 Thursday. To top of page

Photo Galleries
Star Trek technology that we use today With the death of Leonard Nimoy, the actor who played Star Trek's Spock, we remember his character's legacy: The technology we use every day. More
Zombie brands with a second life Where you can still get an Ionic Breeze air freshener. The Sharper Image and five other bankrupt brands still walk among the living, sort of. More
4 trends popping up in high-end kitchens Here's what luxury homeowners are adding to their kitchens. More