Drop in jobless claims pull Treasury prices down

AP News
Posted: Jan 19, 2012 4:47 PM
Drop in jobless claims pull Treasury prices down

A drop in applications for unemployment benefits pushed most U.S. Treasury prices down Thursday.

The Labor Department said that the number of people applying for unemployment benefits sank to 352,000 last week. That's much lower than economists expected and the lowest level since April 2008, before the worst days of the financial crisis.

Signs of a stronger economy tend to send traders out of low-risk Treasurys, causing their yields to rise. The price on the 10-year Treasury note fell 32 cents for every $100 invested. That pushed its yield up to 1.98 percent from 1.90 percent late Wednesday.

The price of the 30-year Treasury bond fell $1.62 per $100 invested, lifting its yield to 3.04 percent from 2.95 percent late Wednesday. The yield on the two-year Treasury was unchanged at 0.23 percent.

In the market for short-term Treasurys, the three-month T-bill paid a yield of 0.04 percent.