Weak jobs report sends traders into Treasurys

AP News
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Posted: May 04, 2012 4:37 PM
Weak jobs report sends traders into Treasurys

A surprisingly weak April jobs report drove traders into U.S. government bonds and knocked a benchmark lending rate to the lowest level in three months.

The Labor Department said Friday that just 115,000 jobs were created last month. That's nearly a third below the number economists had expected. Hiring has slowed sharply from the start of the year, when the U.S. added an average of 252,000 new jobs from December through February.

The price of the 10-year Treasury rose 53.1 cents for every $100 invested. Its yield dropped to 1.88 percent, the lowest since early February. Higher bond prices turn bond yields lower.

The 10-year yield, widely used as a floor for other lending rates, was trading at 1.92 percent late Thursday.

In other Treasury trading, the price of the 30-year Treasury bond rose $1.03 for every $100, pushing its yield down to 3.07 percent from 3.11 percent late Thursday. The yield on the two-year Treasury note slipped to 0.26 percent from 0.27 percent.

In the market for short-term bills, the yield on the three-month Treasury bill paid 0.07 percent.