Treasurys lower as risk appetite returns

By Chavon Sutton, staff reporter

NEW YORK ( -- Treasury prices fell Thursday as risk appetite returned to the markets after reassuring remarks out of Europe.

What prices are doing: The benchmark 10-year note fell 1-5/32 to 101-19/32, pushing the yield up to 3.31% on Thursday from 3.18% late Wednesday. Bond prices and yields move in opposite directions.


The 30-year bond dropped 2- 5/32 to 102-11/32, yielding 4.24%. The 5-year note inched 19/32 lower to 100-4/32 and yielded 2.10%, while the 2-year note was down 4/32 to 99-30/32, yielding 0.78%.

What's moving the market: Treasury prices fell, after rallying late in the previous day, as reassuring remarks out of Europe helped to boost appetite for risk on Thursday.

On Thursday European Central Bank President Jean-Claude Trichet called its interest rates "appropriate" and raised its euro-region growth forecast, helping to allay fears that the euro zone is in dire straits for now. This helped push European and U.S. stocks higher. Other risky assets such as the euro and crude oil saw a boost.

Since Treasury bonds are backed by the U.S. government, investors view them as low-risk investments that are attractive during times of economic uncertainty.

Typically, the Labor Department's report on Thursday that jobless claims fell to a 17-month low would have drove Treasury prices down as well, but analysts say this had little impact on the U.S. government bond market.

"Jobless claims came in as expected," said Peter Cardillo, chief market strategist for Avalon Partners. "The real reason (for the dip in Treasurys) is the good news coming out of Europe -- Trichet indicating that euro zone would be weaker, but not moving into negative territory."

Still, analysts say that the decline in Treasurys could be short-lived, as uncertainty about the global economic recovery looms.

Treasury yields, which move in the opposite direction of prices, have fallen nearly 15% over the past month amid signs of economic weakness in the U.S. and uncertainty in Europe.

Auction: The government has debt auctions scheduled all week, with $70 billion in notes and bonds up for sale. Earlier in the week, it sold $36 billion of 3-year notes, followed by another $21 billion in 10-year notes. Demand for the earlier offers was considered solid. Investors are awaiting a final $13 billion of 30-year bonds for sale Thursday. 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
View rates in your area
Find personalized rates:
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET


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.