Treasury prices drop on improved jobs outlook

AP News
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Posted: Jul 07, 2011 5:44 PM
Treasury prices drop on improved jobs outlook

U.S. government bond prices fell on signs that the economic recovery is getting back on track.

The economic outlook brightened Thursday after payroll processor ADP said private employers added 157,000 jobs in June. That was more than double the number economists had forecast. Traders dumped Treasurys and the stock market rose.

The price of the benchmark 10-year Treasury note fell 18.7 cents for every $100 invested. Its yield rose to 3.13 percent from 3.10 percent late Wednesday. Bond yields rise when their prices fall.

The stronger readings on the labor market prompted economists to raise their forecasts of how many jobs were created overall in the U.S. last month. The Labor Department releases its closely-watched monthly jobs report on Friday.

In other trading, the price on the 30-year Treasury bond was down 15.6 cents, sending its yield up to 4.37 percent from 4.35 percent late Wednesday.

The yield on the three-month T-bill was up 0.01 percent from 0 percent. Its discount was 0.03 percent.