Weak jobs report pushes Treasury prices up

AP News
Posted: Jun 03, 2011 5:36 PM
Weak jobs report pushes Treasury prices up

A bleak employment report sent government bond prices higher Friday.

The Labor Department said Friday that just 54,000 people were added to payrolls in May, fewer than expected. With more people stepping into the workforce, the unemployment rate rose to 9.1 percent, up from 9 percent in April.

Traders drove into Treasurys, a refuge for investors when the economy starts to sag. The price of the 10-year Treasury rose 37.5 cents. The higher price lowered the yield to 2.99 percent from 3.03 percent late Thursday. When bond prices rise, yields fall.

In other trading, the price of the 30-year Treasury rose 12.5 cents, while its yield rose to 4.22 percent from 4.25 percent late Thursday. The yield on the two-year note dropped to 0.43 percent from 0.46 percent.

In the market for short-term Treasury bills, the three-month T-bill paid a 0.03 percent yield. Its discount was 0.04 percent.