Treasury prices slip on news of job gains

AP News
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Posted: Mar 09, 2012 5:12 PM
Treasury prices slip on news of job gains

Treasury prices fell slightly Friday on news that the U.S. added 227,000 jobs last month.

The price of the 10-year Treasury note dropped 12.5 cents for every $100 invested. The 10-year yield, which is used as a benchmark for mortgages and other loans, rose to 2.03 percent, up from 2.02 percent late Thursday.

The hiring was stronger than economists had forecast, but the unemployment rate remained unchanged from January at 8.3 percent. The Labor Department also said more jobs were added in December and January than previously estimated.

Traders usually sell ultra-safe Treasurys on signs of economic strength. When bond prices fall, their yields rise.

In other trading, the 30-year bond fell 6.25 cents for every $100. Its yield rose to 3.19 percent from 3.18 percent Thursday. The yield on the 2-year note edged up to 0.33 percent from 0.31 percent.

In the market for short-term Treasurys, the 3-month T-bill paid a yield of 0.08 percent.