Doubts about economy rise; Treasurys, too

AP News
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Posted: Apr 19, 2012 5:33 PM
Doubts about economy rise; Treasurys, too

Treasury prices rose Thursday after a batch of economic data raised doubts about the pace of economic recovery in the U.S.

The government said that applications for unemployment benefits remain elevated compared to the recent average, a troubling sign for an economy that still needs jobs badly.

The Federal Reserve Bank of Philadelphia said its index of regional manufacturing conditions dropped sharply. And the National Association of Realtors said home prices dropped more than expected last month.

Pessimistic investors sold stocks and sought out ultra-safe investments such as Treasurys. The price of the 10-year Treasury note rose 6 cents for every $100 invested, pushing its yield down to 1.97 percent from 1.98 percent late Wednesday.

The yield on the two-year note was unchanged at 0.27 percent. The 30-year bond rose 9.4 cents and its yield fell to 3.12 percent from 3.13 percent.

The three-month T-bill paid a yield of 0.07 percent.