Treasury prices higher on weak economic data

AP News
Posted: May 19, 2011 5:29 PM
Treasury prices higher on weak economic data

Treasury prices were mostly higher, sending their yields lower, following weak economic data.

The price of the 10-year note gained 9.3 cents Thursday for every $100 invested. The higher price drove the yield down to 3.17 percent from 3.18 percent late Tuesday. Bond prices rise when their yields fall.

Treasury prices tend to rise when concerns about the economy emerge as investors shift money into low-risk assets. The Conference Board's outlook for future economic activity decreased for the first time since June 2010. The National Association of Realtors said fewer people purchased previously occupied homes in April.

In other trading, the yield on the two-year note edged down to 0.53 percent from 0.56 percent. The yield on the 30-year bond rose to 4.30 percent from 4.29 percent.

The yield on the three-month T-bill edged up to 0.04 percent from 0.03 percent. Its discount was 0.05 percent.