Treasurys retreat

Prices for U.S. debt fall as investors look past concerns about the banking sector, focus on supply.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Ben Rooney, staff writer

Click the chart for current bond prices and yields.

NEW YORK ( -- Treasurys fell Wednesday, erasing earlier gains, as investors sought higher returns in the stock market despite mixed corporate results.

Investment bank Morgan Stanley (MS, Fortune 500) reported a bigger-than-expected first-quarter loss and cut its dividend. The results highlighted fears about the health of the banking sector.

But investors appeared to look past Morgan's dismal quarter to focus on strong reports from blue-chip AT&T (T, Fortune 500) and McDonald's (MCD, Fortune 500). Those results helped boost sentiment on Wall Street, undermining demand for safe-haven assets such as Treasurys.

After a shaky opening, stocks advanced in morning trade, as technology and bank stocks rallied. But by the end of the session, Wall Street was mostly lower, with only the tech-laden Nasdaq able to hold onto 2 points.

While a number of major financial institutions, such as Goldman Sachs (GS, Fortune 500), Citigroup (C, Fortune 500) and Bank of America (BAC, Fortune 500), have reported better-than-expected first-quarter results, analysts warn that the financial crisis will continue to take a toll on the banking sector.

Looking ahead, the Federal Reserve is set to buy an undisclosed amount of Treasurys Thursday as part of its campaign to purchase $300 billion in government debt. The Fed bought $7 billion worth of Treasury Inflation-Protected Securities, or TIPS, Tuesday.

By purchasing Treasurys, the central bank hopes to lower interest rates on certain business and consumer loans, such as mortgages, to help get the troubled economy back on track.

Also on Thursday, the Treasury Department plans to auction another $8 billion worth of TIPS.

Investors are also focused on the broader economy. Among the key indicators due later this week: initial jobless claims, durable goods orders, and new and existing home sales.

Bond prices: The benchmark 10-year note was down 12/32 to 98-12/32, and its yield rose to 2.95% from 2.9% late Tuesday. Bond prices and yields move in opposite directions.

The 30-year bond lost 1-4/32 to trade at 94-20/32, and its yield rose to 3.81% from 3.74%.

The 2-year note fell 2/32 to 99-27/32, and its yield rose to 0.97% from 0.95%.

The yield on the 3-month note eased to 0.14% from 0.15%.

Meanwhile, lending rates were mixed. The 3-month Libor was unchanged from Tuesday at 1.10%, according to The overnight Libor rate increased to 0.21% Tuesday from 0.2% Monday.

Libor, the London Interbank Offered Rate, is a daily average of rates that 16 different banks charge each other to lend money in London. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

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.