Treasurys surge after dismal August jobs report

AP News
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Posted: Sep 02, 2011 5:26 PM
Treasurys surge after dismal August jobs report

The yield on the 10-year Treasury note fell near one of its lowest points on record after a bleak jobs report renewed fears that the economy is stagnating.

The government said early Friday that no jobs were added in the U.S. in August. The closely-watched report sent stocks sharply lower. The Dow Jones industrial average fell 2.2 percent; the S&P 500 2.5 percent.

Money flowed into lower-risk investments such as Treasurys, pushing the yield on the 10-year Treasury note briefly below 2 percent. Bond yields fall as demand for them increases.

The 10-year note jumped $1.18 per every $100 invested. Its yield fell to 2 percent from 2.13 percent late Thursday.

The yield on the 10-year note fell as low as 1.98 percent Aug. 18th. That was the lowest yield on record since the Federal Reserve Bank of St. Louis began keeping daily records in 1962.

The 30-year bond rose $3.53 per every $100 invested. Its yield fell to 3.30 percent from 3.50 percent.

The yield on the three-month T-bill was 0.03 percent. Its discount wasn't available.