Treasury prices end week on a strong note
NEW YORK (AP) — Treasurys are ending the week on a strong on after the Federal Reserve's commitment to keep interest rates low and news that U.S. economic growth is moderate, both of which make bonds attractive.
On Friday, the government said the U.S. economy grew at a 2.8 percent annual rate in the final three months of last year. Economists had expected 3 percent.
The benchmark 10-year Treasury note rose 40.62 cents for every $100 invested. The higher price pushed its yield down to 1.89 percent, down from 1.93 percent late Thursday. Last Friday, the 10-year Treasury yield was at 2.03 percent.
Earlier in the week, the Federal Reserve said it was committed to keeping interest rates near zero until late 2014 to help the weak but slowly growing U.S. economy.
That helped the U.S. government sell seven-year notes at a record low yield. The Treasury Department raised $29 billion Thursday at the auction with a yield of 1.359 percent. Treasury raised $99 billion in three auctions this week.
On Friday, the price of the 30-year bond also rose 59.37 cents, sending its yield to 3.06 percent, down from to 3.09 percent.
The yield on the two-year Treasury remained flat at 0.22 percent.
In the market for short-term Treasurys, the three-month T-bill paid a yield of 0.05 percent, unchanged from the previous day's trading.