Treasurys rise after service sector slowdown

AP News
Posted: May 04, 2011 2:54 PM
Treasurys rise after service sector slowdown

Treasury prices are rising again after a report showed a slowdown in the service sector.

The price of the 10-year Treasury bond rose 19 cents per $100 invested in Wednesday trading. Its yield, which moves in the opposite direction, fell to 3.23 percent from 3.26 percent late Tuesday.

The Institute for Supply Management said the U.S economy's service sector, which employs 90 percent of the U.S. workforce, grew last month at the slowest rate since August due to a decline in demand for their services. That sparked worries that higher gas and food prices may be weakening growth.

The report bolsters the case for the Federal Reserve to maintain its loose monetary policy of keeping interest rates low to fuel the economy.