Bonds fall on employment outlook

By Blake Ellis, contributing writer


NEW YORK (CNNMoney.com) -- Treasury prices were slightly lower Thursday as investors braced themselves for the government's employment report.

What prices are doing: The benchmark 10-year bond fell less than 1/32 to 96-10/32, and the yield was 3.83%. Bond prices and yields move in opposite directions.

treasurys.mkw.gif
Click on chart to view bond prices.

The 30-year bond dropped 2/32 to 94-31/32 and its yield rose to 4.7%. The 2-year note was flat at 99-30/32 and yielded 1.04%.

On Wednesday, Treasurys were down on upbeat jobs reports, dimming the appeal of bonds as safe havens for investors.

What's driving prices: "We're right in front of tomorrow's (Friday's) employment data, and that's definitely going to be a market mover," said Bill Larkin, a portfolio manager at Cabot Money Management.

The Labor Department's monthly payroll report is due Friday. Economists expect a decline of 35,000 jobs, according to a consensus estimate from Briefing.com. That compares to a drop of 11,000 the previous month.

The Treasury Department said Thursday it is auctioning off $159 billion of debt next week. Larkin said that while this is a big number, it was somewhat expected, and bond prices won't be affected until the results are announced next week.

What analysts are saying: Positive employment data on Friday will boost yields and pressure bond prices, said Larkin.

"We could have the chance to get the yield up, and once the yield starts rising, it's going to bring to light that this zero interest rate policy has to end," he said.

Larkin said that going into 2010, investors will look at earnings results and retail sales to gauge the level of economic recovery. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.