Treasurys continue to climb

By Blake Ellis, staff reporter


NEW YORK (CNNMoney.com) -- Treasurys extended gains Friday as investors continued to worry about European debt and the global economic recovery.

What prices are doing: The benchmark 10-year note rose 21/32 to 100-13/32, pushing the yield down to 3.45% from 3.54% on Thursday. Bond prices and yields move in opposite directions.

bonds.5.14.png

The 30-year bond was the one exception, falling 2-21/32 to 100-20/32 and yielding 4.34% after a $16 billion auction on Thursday.

The 2-year note edged up 3/32 to 100-13/32 with a 0.78% yield. The 5-year note rose to 101-19/32, yielding 2.16%.

What's moving the market: Markets tumbled on Friday as investors feared that the euro zone's economic problems could spread to the U.S.

The euro dropped to an 18-month low against the dollar, stocks plunged and oil fell, pushing investors into the safety of the bond market. U.S. government-backed Treasurys are viewed as low-risk investments for investors and are particularly attractive during times of economic uncertainty.

The fear in the market overshadowed a slew of economic reports from the government Friday, such as an upbeat reading on retail sales.

The Commerce Department said retail sales rose 0.4% in April, double what economists surveyed by Briefing.com were expecting. Sales excluding autos rose 0.4%, slightly missing the 0.5% gain economists had forecast.

The University of Michigan's consumer sentiment index rose to 73.3 in May from 72.2 in April, coming in lower than the 73.5 reading expected by economists.

Meanwhile, the Federal Reserve reported that industrial production rose 0.8% in April, in line with economists' expectations.

What analysts are saying: Fear about overseas debt has taken center stage lately, said Kevin Giddis, executive managing director at Fixed Income Capital Markets, in a research note.

Even after a $1 trillion rescue package was created to aid struggling European nations and stabilize the euro, investors are skeptical about its overall effectiveness.

"The euro has once again weakened relative to other developed economies' currencies as investor concerns intensify," he said. "There's one camp arguing that the nearly $1 trillion bailout package may not make a meaningful difference to the deteriorating conditions in some of the weaker member economies. Others are worried that a program of that size may be inflationary."

Lending rates: Bank-to-bank lending rates for three-month loans continued to rise on Thursday.

The London interbank offered rate, or Libor, ticked up to 0.445% after rising to 0.436% on Thursday.

Libor is a daily average of interest rates that 16 London banks charge each other to lend money, and is used as a benchmark to calculate adjustable-rate mortgages and other loans.

Higher Libor rates indicate less lending among banks, while lower levels signal an increasing willingness to lend. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 28,135.38 3.33 0.01%
Nasdaq 8,734.88 17.56 0.20%
S&P 500 3,168.80 0.23 0.01%
Treasuries 1.82 -0.08 -4.11%
Data as of 8:49pm ET
Company Price Change % Change
Advanced Micro Devic... 41.15 -1.44 -3.38%
Danaher Corp 148.52 -2.78 -1.84%
General Electric Co 11.34 -0.10 -0.87%
Bank of America Corp... 34.44 -0.24 -0.69%
Ford Motor Co 9.23 -0.09 -0.97%
Data as of Dec 13

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

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.