Treasury prices gain on Fed official's comments

AP News
Posted: Apr 04, 2011 5:11 PM
Treasury prices gain on Fed official's comments

Treasury prices edged up Monday after a Federal Reserve official said U.S. consumers are likely to remain cautious.

In light trading, the 10-year note rose 18.7 cents for every $100 invested. The higher prices lowered the yield to 3.43 percent, down from 3.45 percent late Friday.

In a speech at an economic forum in Florida, Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said the U.S. economy would become less dependent on consumer spending as Americans work to pay down debts. Lockhart also said governments would need to "reverse the accumulation of debt," according to a text of the speech. Both could weigh on economic growth.

In other trading, the price of the 30-year bond rose 3.12 cents. Its yield was flat at 4.49 percent. The yield on the 2-year note dropped to 0.77 percent from 0.81 percent.

In the market for short-term Treasury bills, the three-month T-bill paid a 0.04 percent yield. Its discount was 0.05 percent.