Treasurys flat after strong holiday shopping

AP News
Posted: Nov 28, 2011 3:19 PM
Treasurys flat after strong holiday shopping

U.S. Treasury prices were little changed after a strong start to the U.S. holiday shopping season reduced demand for ultra-safe assets.

Fear also eased that Europe's debt crisis was spiraling out of control. European leaders were discussing bolder steps to contain the region's debt troubles including a joint bond issue.

The price of the benchmark 10-year Treasury edged up 3 cents per $100 invested Monday. The yield, which moves inversely to its price, remained flat at 1.97 percent from late Friday.

A record 226 million shoppers visited stores and websites during the four-day holiday weekend starting on Thanksgiving Day, according to early estimates from The National Retail Federation. The shoppers revived hopes of a thaw in consumer spending, which makes up a large part of the U.S. economy.

In other trading, the yield on the 30-year bond also remained flat at 2.92 percent. Its price rose slightly by 6 cents per $100 invested. The yield on the two-year note was 0.26 percent, down from 0.27 percent Friday.

The three-month T-bill paid a yield of 0.01 percent. Its discount wasn't available.