WASHINGTON -- Treasury security prices slipped a little more yesterday, but much less than one would expect given the barrage of strong economic reports that came out.
Late yesterday, the long bond was quoted down a mere 6/32 at a price of 94 3/32 with an 8.02% yield. The 10-year note lost two ticks to 99 21/32 with a 7.92% yield.
The short end also fell slightly, with yields on three-month bills rising two basis points to 5.74% and yields on six-month bills gaining four basis points to 6.28%.
Analysts speculated that a firm dollar, falling gold and oil prices, and short covering helped support the market.
Several reports yesterday indicated that growth may be stronger in the fourth quarter than economists previously thought, prompting analysts to say there was an outside chance the Federal Reserve would increase short-term rates again this year.
The National Association of Purchasing Management reported its purchasing managers index gained 1.5 points to 61.2%, indicating that growth is not yet slowing in the manufacturing sector.
Also, the Commerce Department said personal income and spending, and construction spending all climbed more than expected in October.
Treasury Market Yields Previous Previous Thursday Week Month3-Month Bill 5.71 n.a. 5.226-Month Bill 6.27 n.a. 5.761-Year Bill 6.91 n.a. 6.262-Year Note 7.43 n.a. 6.963-Year Note 7.62 n.a. 7.215-Year Note 7.80 n.a. 7.637-Year Note 7.84 n.a. 7.7910-Year Note 7.91 n.a. 7.9430-Year Bond 8.01 n.a. 8.09
Source: Cantor, Fitzgerald/Telerate
Stock Market: The Dow Jones Industrial Average fell 38.36 points yesterday, to close at 3700.87.
Foreign Exchange: In late New York trading yesterday, the dollar was quoted at 99.30 Japanese yen and 1.5736 German marks.
Commodities: The Commodity Research Bureau's index closed up 0.42 point yesterday, at 229.65.