30-year rides auction wave

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- The 30-year bond continued to rise Friday, carrying over from a successful $13 billion government auction the day before. Other Treasurys remained relatively flat as investors look ahead to statements from the Fed next week.

What prices are doing: The 30-year bond rose 20/32 to 99-30/32 and its yield fell to 4.631%. Bond prices and yields move in opposite directions.

10yearyield.mkw.gif

The benchmark 10-year note inched up slightly 6/32 to 99-11/32 with a yield of 3.708%.

The 2-year note was flat at 99-26/32 with a yield of 0.969%. The 5-year note was flat at 99-26/32 with a yield of 2.416%.

What's moving the market: Friday was a quiet day for Treasurys, as most U.S. debt prices remained flat. The 30-year bond was an exception, it continued to rise following a government auction of the long-term bonds Thursday. It was the last of three notes and bonds auctions totaling $74 billion this week -- all of which showed strong demand.

Mixed stocks and economic reports were hardly market movers for Treasurys on Friday morning.

Three reports showed mixed data about the health of the economy, including an unexpected drop in consumer confidence and a surprisingly strong retail sales report. Meanwhile, business inventories were unchanged from the month before.

Stocks churned throughout the day amid the mixed news.

What analysts are saying: Investors are sitting on their hands, waiting for any key statements coming out of the Fed at next week's Federal Open Market Committee meeting, set for March 16.

The verbiage they'll pay attention to is whether Fed Chairman Ben Bernanke will allude to any policy changes, especially when it comes to timing for a potential hike in interest rates, said Kenneth Naehu, managing director and head of fixed income for Bel Air Investment Advisors.

In the meantime, investors are likely to have a "wait and see attitude," he said. To top of page

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