Treasurys drop after strong retail sales report

AP News
Posted: Mar 11, 2011 5:24 PM
Treasurys drop after strong retail sales report

Treasury prices edged lower Friday following a strong report on retail sales.

The Commerce Department said Friday that retail sales rose 1 percent in February, the largest gain in 4 months. Shoppers spent more on cars, clothing and gas.

Signs of a stronger economy usually lead traders to drop safe investments like Treasurys. The selling pressure was tempered by investors seeking stable investments following a massive earthquake in Japan.

In late afternoon trading, the 10-year note fell 34.3 cents. The lower price pushed the yield up to 3.41 percent from 3.37 percent late Thursday. Yields rise when prices fall.

The 30-year bond fell 87.5 cents. Its yield rose to 4.55 percent from 4.50 percent. The yield on the two-year note inched up to 0.65 percent from 0.63 percent.

The yield on the 3 month bill was 0.07 percent. Its discount rate was 0.08 percent.