Treasurys prices dip on strong oil, stock markets

AP News
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Posted: Apr 20, 2011 5:17 PM
Treasurys prices dip on strong oil, stock markets

Treasury prices fell Wednesday as investors sought out riskier assets after strong corporate earnings and an unexpected drop in crude oil supplies.

The price of the 10-year Treasury note fell 37.5 cents per $100 invested in late trading Wednesday. Its yield, which moves in the opposite direction, rose to 3.41 percent from 3.37 percent late Tuesday.

Traders snapped up stocks after Intel Corp. reported results that beat Wall Street's expectations. IBM Corp., Wynn Resorts Ltd. and United Technologies Corp. also posted stronger earnings. The Nasdaq composite index had its biggest one-day jump in a month, and the Dow Jones industrial average closed at a nearly three-year high.

Investors also jumped into the oil market, sending prices above $111 a barrel, after the government reported a surprise drop in U.S. crude supplies. Metal prices were also higher.

Traders are looking toward the Federal Reserve's policymaking meeting next week for direction on monetary policy. Fed Chairman Ben Bernanke also is scheduled to speak Wednesday after the two-day meeting at his first news conference

"The market expects the Fed will remain very supportive and accommodative," said Josh Stiles, analyst at IDEAGlobal.com, despite recent concerns over inflation coming from some central bank officials.

In other trading, the price of the 30-year bond fell 62.5 cents per $100 invested, while its yield rose to 4.47 percent from 4.43 percent late Tuesday. The yield on the two-year note edged up to 0.67 percent from 0.65 percent.

The yield on the three-month T-bill was unchanged at 0.05 percent. Its discount was 0.06 percent.