Treasurys rise after disappointing economic data

AP News
Posted: Apr 27, 2012 4:03 PM
Treasurys rise after disappointing economic data

Treasury prices rose Friday after the government said the U.S. economy slowed in the first three months of the year.

The price of the benchmark 10-year Treasury note rose 6 cents for every $100 invested. The yield on the note fell to 1.93 percent from 1.95 percent late Thursday.

The Commerce Department estimated the U.S. economy grew at an annual rate of 2.2 percent in the January-March quarter, compared with a 3 percent rate in the final quarter of 2011. Consumer spending accelerated to an annual rate of 2.9 percent from a second robust quarter of growth in auto purchases.

Meanwhile, worries over European debt crisis continued. The credit rating agency Standard & Poor's warned that the Spain would have trouble paying down its debt with its economy in recession. Yields on Spanish and Italian government bonds rose, a sign that investors are still uneasy about the ability of those countries to service their debt. .

The 30-year Treasury bond rose 3 cents for every $100 invested. Its yield fell to 3.11 from 3.12 percent late Thursday.

The yield on the two-year Treasury note rose to 0.27 percent from 0.26 percent. The yield on the three-month Treasury bill was unchanged at 0.09 percent.