Treasurys rise with weak inflation reading

Treasurys rise with weak inflation reading
News
Friday, October 29, 2010 - 3:20pm

NEW YORK (AP) - Treasurys are ending the day higher, after a
report showed little sign of inflation.

The Commerce Department reported Friday that the economy
expanded two percent in the third quarter, matching what economists
expected. But the same report showed that a gauge of prices
excluding food and energy rose just 0.8 percent, the second lowest
reading since 1962.

The bond market reads weak inflation as reassurance that the
Federal Reserve will begin buying Treasurys next week.

All types of Treasurys rose. The 30-year long bond jumped $1.06,
pushing its yield down to 3.98 percent from 4.05 late Thursday.
The 10-year note gained 46.8 cents. Its yield fell to 2.60
percent from 2.66.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

 

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