Treasurys rise on disappointing retail sales

By Chavon Sutton, staff reporter

NEW YORK ( -- Treasurys rallied Friday after a disappointing retail sales report sparked renewed concerns about the economic recovery.

What prices are doing: The benchmark 10-year note rose 27/32 to 102-11/32, pushing the yield down to 3.22% on Friday from 3.31% late Thursday. Bond prices and yields move in opposite directions.


The 30-year bond rose 1-21/32 to 104, yielding 4.14%. The 5-year note jumped 14/32 to 100-16/32 and yielded 2.02%, while the 2-year note was up more than 3/32 to 100-1/32, yielding 0.73%.

What's moving the market: Treasury prices rallied after a disappointing report on retail sales sparked renewed fears about the strength of the U.S. economy.

The Commerce Department reported that retail sales surprisingly fell by 1.2% in May, sending wary investors fleeing toward the relative safety of government-backed bonds.

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.

Treasury prices seesawed throughout the week, in line with U.S. stocks, as investors looked for direction amid the ebb and flow of economic news. As uncertainty about the global economy recovery looms, many analysts say this trend is likely to continue, potentially putting the U.S. economy on even shakier ground.

"Longer term, the economy is vulnerable to a double-dip recession," said David Coard, head of fixed income trading at The Williams Capital Group.

Treasury yields, which move in the opposite direction of prices, have fallen over 10% in the past three months amid signs of economic weakness in the U.S. and uncertainty in Europe.

Coard says that even if the U.S. economy doesn't experience a double dip, it is likely to see much slower growth in the second half of 2010.

"I don't think there's been enough jobs created or income growth to keep the economy growing at the same pace that we've enjoyed," he said. "The big question remains: is growth sustainable? I'm skeptical." 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.