Treasurys dip for third day on better econ data

AP News
Posted: Mar 25, 2011 5:27 PM
Treasurys dip for third day on better econ data

Treasury prices fell for a third day in a row on signs that the economy is improving as companies hire more workers.

The Labor Department said Friday that unemployment dropped in 27 states in February. It rose in just seven states. Some of the states that added jobs were among those hardest hit by the recession including California, Nevada and Florida.

The price of the 10-year Treasury fell 28.12 cents, sending the yield higher to 3.44 percent from 3.41 percent late Thursday.

The yield on the 2-year Treasury rose to 0.74 percent from 0.70 percent. Bond yields rise when their prices fall.

Signs of an improving economy often lead traders to sell low-paying Treasurys.

The Commerce Department said that gross domestic product rose at a 3.1 percent annual rate in the fourth quarter of 2010. That's slightly better than economists expected and higher than the estimate made last month.

Bond traders are also preparing for a fresh round of supply next week. The Treasury plans to auction $99 billion of notes, ranging in maturities from two years to seven years.

In other trading, the 30-year bond fell 25 cents, sending the yield up to 4.50 percent from 4.44 percent the day before.

In the market for short-term Treasury bills, the yield on the three-month T-bill was unchanged at 0.08 percent. Its discount was 0.09 percent.