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Bonds rebound, dollar mixed
Treasurys recover on hunch war may be imminent after all; dollar mixed.
March 14, 2003: 4:42 PM EST

NEW YORK (CNN/Money) - Treasury bonds rebounded Friday as tough rhetoric from Washington convinced investors that a war on Iraq is imminent even without United Nations support.

Just after 4:30 p.m. ET, the benchmark 10-year note rose 12/32 of a point in price to 101-13/32, taking its yield to 3.71 percent from 3.74 percent late Thursday, though that still leaves it well above the week's 3.55 percent low. The 30-year bond jumped 18/32 of a point to 110-6/32, yielding 4.72 percent, down from 4.74 percent late Friday. Yields move in the opposite direction from prices.

The five-year note gained 7/32 of a point to 101-13/32, yielding 2.69 percent, and the two-year note climbed 3/32 of a point to 99-29/32, yielding 1.55 percent.

The dollar edged higher against the euro but weakened against the Japanese currency.

Around 4:30 p.m. ET, the euro bought $1.0748, down 0.6 percent from $1.0807 late Thursday. Earlier, the euro hit a two-week low of $1.0693.

The dollar traded near a three-week high against the yen at ¥118.75 before slipping back to ¥118.54, a loss of 0.2 percent on the day.

Treasurys recouped about a third of Thursday's punishing losses but prices are ending the week substantially lower, particularly short-dated debt, which benefited most from war angst.

The political equation was complicated by news Chile was presenting a new proposal to the United Nations which would give Iraq three to four weeks to disarm or face the consequences, including war.

The White House dismissed the proposal as a "non-starter," reinforcing market suspicions that a war is not distant.

"More and more people believe we are going to go in without U.N. approval," said Vincent Verterano, head government bond trader at Nomura Securities International.

Whatever the reliability of Wall Street's strategic military forecasts, investors decided to err on the side of caution: They bought bonds.  Top of page


-- from staff and wire reports




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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.