Bonds toppled by inflation woes Overall wholesale prices rise more than expected, fanning inflation concerns; dollar drifts. NEW YORK (CNNMoney.com) -- Treasury prices closed down Tuesday after a key wholesale inflation report came in above expectations. The dollar gained slightly versus the euro and the yen. The benchmark 10-year note fell 18/32, or $5.63 on a $1,000 note, to yield 5.14 percent, up from 5.07 late Monday. The 30-year bond tumbled 30/32, or $9.38 on a $1,000 bond, to yield 5.17 percent, up from 5.10 the prior session. Bond prices and yields move in opposite directions. The 2-year note fell 5/32, or $1.56 on a $1,000 note, to yield 5.19 percent, up from 5.12 late Monday. The 5-year bond gave up 3/32, or $0.93 on a $1,000 note, to yield 5.11 percent, up from 5.04 percent Monday. Bond prices and yields move in opposite directions. A government report showed prices at the wholesale level rose 0.5 percent in June, up from 0.2 percent in May and above estimates for a 0.3 percent gain. The core Producer Price Index, which strips out volatile food and energy prices, rose 0.2 percent, down from the 0.3 percent gain posted in May and in line with estimates. In currency trading, the dollar bought ¥117.28, up from ¥117.09 late Monday. The euro bought $1.2506, down from $1.2515 in the previous session. Related: The latest on bonds |
|