Treasury prices lower on improved economic news

AP News
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Posted: Jan 04, 2012 5:18 PM
Treasury prices lower on improved economic news

Fresh news of increased consumer spending and an improving jobs picture sent traders away from the safety of U.S. government bonds Wednesday.

Americans bought about 10 percent more cars in 2011 than in 2010 and analysts expect the momentum to continue in 2012. Also the Labor Department reported that unemployment rates fell in three-quarters of large U.S. cities in November.

The improved economic news sent the benchmark U.S. Treasury note down 31.2 cents for every $100 invested on Wednesday. Its yield, which trades in the opposite direction, rose to 1.98 percent from 1.95 percent Tuesday.

The price of the 30-year bond fell 93.75 cents, sending its yield up to 3.03 percent from 2.97 percent.

The yield on the two-year note remained flat at 0.26 percent.

In the market for short-term Treasury bills, the 3-month T-bill paid a yield of 0.01 percent.