RTRS: TREASURIES-Long-dated prices rise after weak N.Y. Fed data
NEW YORK, Dec 15 (Reuters) - Long-dated U.S. Treasuries prices rose on Monday after regional Federal Reserve data fanned concerns about deflation, reinforcing the view of sustained, low long-term interest rates.
Another record low reading on the New York Fed's "Empire" manufacturing index also intensified demand for ultra-short dated Treasury bills with one-year rates dipping into negative territory.
The report's prices paid index fell into minus 7.45 percent in December, moving into negative territory for the first time since June 2003. For more, see [ID:nNAT004649]
"The price paid component continues to collapse. This is putting some bids into the long end of the curve," said Lou Brien, market strategist with DRW Treding in Chicago.
The price on 10-year Treasury notes were up 5/32, compared with a 2/32 gain prior to the regional Fed data. Their yield which moves inversely to price last traded at 2.55 percent, versus 2.57 percent prior the New York Fed report and late on Friday.
