Treasurys barely budge on mixed economic news

AP News
Posted: Feb 28, 2011 5:24 PM
Treasurys barely budge on mixed economic news

Treasurys were mostly flat Monday as traders weighed suddenly stable oil prices against mixed news on the economy.

The prices of the 10-year note edged down 6.25 cents. Its yield was unchanged from late Friday at 3.42 percent.

The Commerce Department reported that personal income rose by the largest amount in nearly two years in January, lifted by a tax cut that began last month. Consumer spending rose just 0.2 percent, the lowest increase since the monthly gauge failed to rise last June.

Worries that unrest in Libya would hinder oil production eased, sending oil below $97 a barrel after trading above $100 last week. Turmoil in the Middle East and North Africa sent investors into Treasurys in recent weeks, lowering their yields.

The 30-year bond rose 6.25 cents. Its yield slipped to 4.49 percent from 4.50 percent late Friday. The yield on the 2-year note dropped to 0.69 percent from 0.73 percent.

In the short-term Treasury bill market, the three-month bill paid a 0.13 percent yield. Its discount was 0.14 percent.