Treasurys flat as economic worries continue

AP News
Posted: Aug 03, 2011 5:29 PM
Treasurys flat as economic worries continue

Treasury prices remained flat, keeping their yields at lows for the year, as investors worry about the pace of economic growth in the U.S.

The price of the 10-year Treasury note edged down 12.5 cents Wednesday and its yield was flat at 2.62 percent from late Tuesday. The yield went as low as 2.56 percent, the lowest since November.

On Wednesday, the Institute of Supply Management said the U.S. service sector grew in July at the weakest pace in 17 months. It was the latest sign that the economy may be slowing.

Other data this week confirmed that consumers had cut spending in June for the first time in nearly two years and manufacturing slowed in July. Generally, investors start moving into safer investments like Treasurys when they are worried about the economy slowing down.

In other trading, the price on the 30-year Treasury bond was up 9.3 cents, sending its yield down to 3.90 percent from 3.91 percent late Tuesday.

The yield on the three-month T-bill was 0.01 percent. Its discount was 0.01 percent.