Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Treasury market eyes more Fed purchases

By Ben Rooney, staff reporter

NEW YORK (CNNMoney.com) -- Treasury yields were mixed Friday amid speculation that weak economic data will spur the Federal Reserve to accelerate its purchases of U.S. bonds and notes.

The yield on the 10-year note rose to 2.53% from 2.52% late Thursday as its price edged lower. The yield on the 30-year note rose to 3.72% from 3.69%.

But the shorter end of the yield curve was under pressure. The yield on the 2-year note was 0.43%, versus 0.44%, and the 5-year yield slid to 1.27% from 1.28%.

Yields rallied early in the session after a key index of activity in the manufacturing sector fell to a 9-month low. It was the latest in a string of disappointing economic reports an raised bets the Fed will expand its purchases of U.S. Treasurys, a policy called quantitative easing.

"At this stage, it is looking increasingly likely that the Fed will announce a new round of purchases, probably before the end of the year," economists at Capital Economics wrote in a research report.

The Institute for Supply Management's manufacturing index slipped to 54.4 in September, from 56.3 in August. The amount fell short of the 54.8 reading expected in a Briefing.com consensus of economists.

Any reading above 50 signals growth, but the index showed that new orders for manufactured goods and production both fell significantly in the month.

Separately, the U.S. Commerce Department said personal income increased 0.5% in August, while spending rose 0.4%. Economists expected both consumer spending and income to have risen 0.3% in August.

"Overall, the ISM and personal income reports are consistent with another quarter of pretty tepid growth to end the year," the Capital Economics report said. "2011 is unlikely to be much better." To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.92%3.83%
15 yr fixed2.99%2.98%
5/1 ARM3.27%3.18%
30 yr refi4.01%3.92%
15 yr refi3.08%3.08%
Rate data provided
by Bankrate.com
View rates in your area
Find personalized rates:
Index Last Change % Change
Dow 17,813.39 1.20 0.01%
Nasdaq 5,116.14 13.34 0.26%
S&P 500 2,088.87 -0.27 -0.01%
Treasuries 2.23 -0.01 -0.49%
Data as of 10:01pm ET
Company Price Change % Change
Pfizer Inc 32.87 0.90 2.82%
HP Inc 12.64 -2.00 -13.66%
General Electric Co 30.36 -0.30 -0.98%
Bank of America Corp... 17.44 -0.03 -0.17%
Freeport-McMoRan Inc... 8.10 -0.20 -2.41%
Data as of Nov 25


Looks like the Magic Kingdom is lacking some sparkle. Disney's cable channels have lost millions of subscribers in recent years. More

Brazilian police arrested a prominent senator and billionaire CEO for interfering in the investigation of Petrobras, which has pushed Brazil into recession. More

Watsi crowdfunds donations to cover healthcare costs of those in need. And it's seeing a surprising trend: micro-donations via the popular Chinese social networking app, WeChat. More

Some of the coolest toys this year are from small businesses. Here are 10 hot toys that just might be a smash hit this holiday season. More

Facebook just increased the amount of paid time off new dads working at its international offices can take. More