WASHINGTON -- Surprising surges in September housing starts and the Philadelphia Federal Reserve Bank's business outlook survey for October pummeled Treasury security prices yesterday. A weakening dollar didn't help.
The 30-year bond lost more than a point with the price falling to 94 10/32 late in the day, pushing the yield up to 8.00% from 7.89% on Wednesday. This is only the second time since May 1992 that the yield on the long bond has hit 8.00%. The 10-year note lost more than 3/4 of a point to hit a price of 96 %2, putting its yield at 7.80%.