A drop in home sales pushes Treasury prices up

AP News
Posted: Mar 23, 2012 5:15 PM
A drop in home sales pushes Treasury prices up

A drop in new home sales pushed U.S. government bond prices up Friday.

The Commerce Department reported that new-home sales sank 1.6 percent last month. That's the second straight month of falling home sales.

In late Friday afternoon trading, the price of the 10-year Treasury note rose 40.6 cents for every $100 invested. Its yield dropped to 2.23 percent from 2.29 percent late Thursday.

The price of the 30-year Treasury bond rose 90.6 cents. That pushed its yield down to 3.31 percent from 3.37 percent late Thursday. The yield on the two-year Treasury note dropped to 0.36 percent from 0.38 percent.

Signs of weak global economic growth have brought buyers back to Treasurys for four days in a row. The demand has pulled yields back down from highs reached in the past week.

The yield on the 10-year note briefly hit 2.4 percent early Tuesday, its high for 2012.

In other Friday trading, the 3-month Treasury bill paid a yield of 0.07 percent.