Bonds mixed as investors await jobs report

chart_ws_bond_10yearyield.top.pngClick the chart for more data on bonds. By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney.com) -- Yields of shorter-dated Treasurys fell Thursday as investors turned to the safety of government debt ahead of the monthly payrolls data.

A report Thursday showed new claims for unemployment benefits unexpectedly fell last week to the lowest level in almost three months. But a separate report showed that though the number of job openings increased slightly in August, there was no real improvement of the odds that unemployed workers will find a job.

The previous session also brought two disappointing jobs reports. Private sector employers cut 39,000 jobs in September, according to Automatic Data Processing. Additionally, Challenger, Gray & Christmas Inc.'s report showed employers planned on cutting another 37,151 employees in September.

The mixed jobs data made investors cautious ahead of Friday's monthly government report on payrolls and the unemployment rate. The labor market has been lagging, and it's difficult for the overall economy to bounce back when Americans are struggling to find jobs.

Disappointing economic reports have fueled speculation that the Federal Reserve will ramp up its purchase of U.S. Treasurys, in a move called quantitative easing. The policy aims to boost the economy by keeping borrowing costs low.

Investors tend to plunk their cash into Treasurys, which are considered safe-haven investments, in times of uncertainty. Those moves have sent bond yields to record lows this week.

Yields: Investors piled into shorter-dated debt Thursday, pushing yields lower. The yield on the benchmark 10-year note fell to 2.38% from 2.41% late Wednesday.

The yield on 5-year Treasury notes fell to 1.13%, while the 2-year yielded a record low below 0.36% earlier in the session.

The 30-year yield bucked the trend, rising to 3.72% from 3.67% late Wednesday. To top of page

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