NEW YORK (CNNMoney.com) -- Treasury yields drifted decrease Friday as demand for the protection of U.S. authorities debt acquired a lift following a disappointing report on shopper sentiment and a tame studying on inflation.
The benchmark 10-year yield dropped to 2.seventy five% from 2.seventy six% late Thursday. Treasury prices and yields move in opposite directions. The 30-12 months bond yield eased to 3.ninety one%, and the yield on the 5-12 months note slipped to 1.45%. The 2-yr word's yield edged lower to 0.forty seven%.
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Yields were even lower earlier in the session on renewed worries of Eire's financial well being after a information article within the Irish Impartial urged the country may need to tap the Worldwide Financial Fund for aid.
However shopping for of the so-known as safe-haven property cooled after Ireland's Division of Finance stated the articles had been a "misinterpretation" of an analyst analysis report from Barclays Capital.
"The analyst report was measured and advised that Ireland would wish to look to the IMf if sure conditions come to move," stated Kim Rupert, fastened earnings analyst at Motion Economics. "However the market took it too far."
Still, Treasurys found additional support from U.S. economic reports.
The studying on consumer sentiment form Thomson Reuters and College of Michigan unexpectedly fell to 66.6 in September from 68.9 in the previous month. Economists surveyed by Briefing.com have been expecting the index to edge up to 70.
A benign reading on inflation also increased demand for Treasurys. The federal government mentioned that core U.S. consumer costs, which strip out risky meals and vitality costs, were flat in August. Economists had been anticipating a 0.1% rise in core prices.
"There's little or no inflationary strain within the system, which helps the Treasury market," Rupert said.
Whereas a tame studying gives the Federal Reserve extra flexibility to increase buying of U.S. Treasurys to stimulate the economy, Rupert mentioned the financial coverage committee continues to be too divided to arrive at a consensus over whether the transfer is necessary.
The benchmark 10-year yield dropped to 2.seventy five% from 2.seventy six% late Thursday. Treasury prices and yields move in opposite directions. The 30-12 months bond yield eased to 3.ninety one%, and the yield on the 5-12 months note slipped to 1.45%. The 2-yr word's yield edged lower to 0.forty seven%.
EmailPrintComment
Yields were even lower earlier in the session on renewed worries of Eire's financial well being after a information article within the Irish Impartial urged the country may need to tap the Worldwide Financial Fund for aid.
However shopping for of the so-known as safe-haven property cooled after Ireland's Division of Finance stated the articles had been a "misinterpretation" of an analyst analysis report from Barclays Capital.
"The analyst report was measured and advised that Ireland would wish to look to the IMf if sure conditions come to move," stated Kim Rupert, fastened earnings analyst at Motion Economics. "However the market took it too far."
Still, Treasurys found additional support from U.S. economic reports.
The studying on consumer sentiment form Thomson Reuters and College of Michigan unexpectedly fell to 66.6 in September from 68.9 in the previous month. Economists surveyed by Briefing.com have been expecting the index to edge up to 70.
A benign reading on inflation also increased demand for Treasurys. The federal government mentioned that core U.S. consumer costs, which strip out risky meals and vitality costs, were flat in August. Economists had been anticipating a 0.1% rise in core prices.
"There's little or no inflationary strain within the system, which helps the Treasury market," Rupert said.
Whereas a tame studying gives the Federal Reserve extra flexibility to increase buying of U.S. Treasurys to stimulate the economy, Rupert mentioned the financial coverage committee continues to be too divided to arrive at a consensus over whether the transfer is necessary.