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Benchmark yield continues its free fall Treasurys poised to post one of best weeks this year, helped by increasing signs of weakness in US economy; dollar falls. NEW YORK (CNNMoney.com) -- The yield on the benchmark note continued to fall Friday to levels not seen in over six months despite a lack of any significant economic reports. The dollar turned lower against the euro and the yen.
The 10-year Treasury note gained 8/32, or $2.50 on a $1,000 note, to yield 4.60 percent, its lowest level since March, down from 4.64 percent late Thursday. The recent run up in Treasury prices put them on a course to their best week in over a year, Reuters reported. The 30-year bond rose 14/32, or $4.38 on a $1,000 bond, to yield 4.74 percent, down from 4.78 percent the previous session. Bond prices and yields move in opposite directions. The five-year note rose 4/32 to yield 4.55 percent, while the two-year note was up one tick, yielding 4.67 percent. With virtually no major economic guidance due Friday, investors continued to focus on Thursday's reading on Mid-Atlantic business activity, which bolstered expectations that the Federal Reserve will leave interest rates untouched and possibly even initiate some cuts next year. The Federal Reserve Bank of Philadelphia said Thursday its index of business conditions fell in September to its weakest level since April 2003 - coming in well below economists' expectations "The data yesterday out of the U.S. suggested the U.S. economy was slowing and getting ready to tip closer to recession and this has sent shudders out around the world and led to a selloff in emerging market debt today," Chris Rupkey, senior financial economist at Bank of Tokyo-Mitsubishi UFJ in New York told Reuters. That reports come on the heels of signs of lower inflationary pressure at the wholesale level and flagging growth in the housing industry, and Wednesday's Fed meeting. As expected, the Fed's policy-makers voted to keep their overnight federal funds rate target at 5.25 percent on Thursday, the level it reached in June after 17 straight increases stretching over more than two years. In currency trading, the euro bought $1.2815, up from $1.2792 late Thursday. The dollar bought ¥116.23, down from ¥116.31 the previous session. Reuters contributed to this report |
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