WASHINGTON -- Bonds slumped early Friday after a slightly weaker-than-expected September trade report was released, but by closing time the entire yield curve was little changed from the previous day. The long bond was down as much as 11 ticks by mid-morning after the Labor Department reported a $10.13 billion U.S. trade deficit in September. marginally higher than expectations.
By late Friday; however. the 30-year bond was quoted unchanged at a price of 92 2/32 and a yield of 8.12%; 10-year notes finished down three ticks at 98 31/32, with an 8% yield.
A few ticks were shaved off other note prices, while bills finished the day up a little. with three- and six-month yields slipping to 5.47% and 6.03%, respectively.
Charles Roden, managing director and head of fixed4ncome investing at Josephthal. Lyon & Ross, said the market held up pretty well given a "market psychology rampant on the negative side,"
Others speculated that short-covering helped the long end of the market hold water after two days of losses.
Trading was thin with buyers hard to come by, traders said. noting that this week is likely to be uneventful with Thanksgiving on Thursday and few economic reports coming out.
-- Dean PattersonTreasury Market Yields Previous Previous Monday Week Month 3-Month Bill 5.47 n.a. 5.116-Month Bill 6.03 n,a. 5.641-Year Bill 6.62 n,a. 6.152-Year Note 7.18 n.a. 6.743-Year Note 7.51 n.a. 7.035-Year Note 7.77 n.a. 7.437-Year Note 7.88 n.a. 7.6210-Year Note 7.99 n.a. 7.7830-Year Bond 8.12 n.a. 7.97
Source: Cantor, Fitzgerald / Telerate
Stock Market: The Dow Jones Industrial Average fell 12.79 points Friday, to close at 3815.26.
Foreign Exchange: In late New York trading Friday, the dollar was quoted at 98.50 Japanese yen and 1.5555 German marks.
Commodities: The Commodity Research Bureau's index closed down 0.93 point Friday, at 232.72.