MW: Treasurys rebound as U.S. data unsettle investors
By Sue Chang, MarketWatch
SAN FRANCISCO (MarketWatch) — Treasurys resumed their rally on Friday after a one-day hiatus as disappointing U.S. data lured investors back to assets deemed safe havens.
A drop in regional measure of business activity in the Chicago-area and a smaller-than-expected rise in consumer sentiment in September sparked strong demand for U.S. debt.
Yields on the 10-year note 10_YEAR -2.59% fell 5 basis points to 1.61% while yields on the 30-year bond 30_YEAR -1.97% slid 5 basis points to 2.79%. Yields on the 5-year note 5_YEAR -4.80% eased 3 basis points to 0.64%.
A basis point is one one-hundredth of a percentage point and yields move inversely to prices.
The MNI Chicago Report’s purchasing managers’ index fell to 49.7 this month from 53.0 in August, the lowest level in three years. Any reading below 50 indicates contraction.
A gauge of consumer sentiment climbed to 78.3 in September from 74.3 in August, according to the University of Michigan-Thomson Reuters consumer-sentiment gauge. A preliminary reading had pegged the level at 79.2, and economists polled by MarketWatch expected the final figure to rise to 79.5.
