MW: Treasurys, dollar stay down after spending rises
By Deborah Levine
NEW YORK (MarketWatch) -- Treasury prices pared a loss and the dollar declined further on Friday after a report showed U.S. consumer spending rose 0.4% in August, while incomes rose 0.5%. Separately, the Federal Reserve's preferred gauge of inflation increased 0.2% in August. The dollar index (DXY 78.27, -0.45, -0.58%) , a measure of the greenback against a basket of six major currencies, fell to 78.221, from 78.298 before the data and down from 78.779 late Thursday. The euro rose to $1.3741, versus $1.3729 earlier and from $1.3633 in late North American trading Thursday. Yields on 10-year notes (UST10Y 2.54, +0.03, +1.27%) , which move inversely to prices, pared an earlier increase but stayed up by 2 basis points to 2.53%. Still to come are reports on consumer confidence and a national manufacturing index.
