RTRS: TREASURIES-Bonds hold gains after Oct retail sales drop
NEW YORK, Nov 14 (Reuters) - U.S. government debt prices held their earlier gains on Friday after data showed a steeper-than-expected drop in consumer spending in October, fanning fears of a severe recession and bolstering safety bids for bonds.
The Commerce Department said retail sales fell by 2.8 percent last month, the biggest single-month drop ever. Analysts had predicted a 2.0 percent decrease. [ID:nCAT002370]
The price on benchmark 10-year notes were up 27/32 to 99-31/32, compared with 99-30/32 shortly before the retail sales data. Their yield which moves inversely with price was 3.74 percent versus 3.75 percent just before the data and 3.85 percent late Thursday.
Two-year notes were up 1/32 in price, little changed from the level just ahead of the retail data. Their yield was 1.21 percent, flat versus before data and down from 1.24 percent late Thursday. (Reporting by Richard Leong; Editing by Theodore d'Afflisio)
