Treasury prices rise on mixed economic data

AP News
Posted: Aug 12, 2011 5:47 PM
Treasury prices rise on mixed economic data

Treasury prices rose Friday, capping a volatile week in the bond market, after investors got more conflicting reports on the health of the economy.

The Reuters/University of Michigan survey of consumer sentiment fell to its lowest level in more than 30 years. But the government also reported that retail sales rose in July and edged up more in May and June than previously thought.

The 10-year Treasury rose 90.62 cents for every $100 invested. The increase in price sent the yield to 2.26 percent, down from 2.34 percent late Thursday.

The wild swings in stocks briefly sent the 10-year Treasury yield to a record low of 2.03 percent this week as investors looked for a safe place to put their money.

"I think just plain old fear" took over, said Howard Simons, a strategist with Bianco Research in Chicago.

The 30-year Treasury rose $1.31 for every $100 invested, sending its yield down to 3.73 percent from 3.77 percent.

The three-month Treasury bill paid a 0.01 percent yield. Its discount was 0.01 percent.