Thursday, October 16, 2014

U.S. Treasuries Edge Higher on Weak Economic Data

U.S. Treasury prices jumped on Wednesday, rising sharply for a second day on disappointing U.S. economic data that aggravated widening worries about a global slowdown.  Prices of 30-year Treasurys rose more than 4 points and were yielding 2.74 percent, a level last seen during May 2013.

Yields on benchmark 10-year Treasury notes – used to calculate mortgage rates and other consumer loans – fell to 1.8 percent on Wednesday morning before bouncing back to 2 percent later on—down from Tuesday’s close of 2.206 percent.

“There was a trifecta of weak data this morning: several disappointments in sales, manufacturing and prices,” said Kim Rupert, managing director of Action Economics in San Francisco. “That’s just adding to the fear of a global slowdown. And then the price action is being exacerbated by the Ebola fears.”

CNBC

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